According to data released by the National Statistics Institute, industrial production in May 2011 recorded a gross series growth by 8.4% MoM as compared to April and by 7.1% YoY, supported by the processing and extractive industries.

The seasonally adjusted series growth was by just 1.6% compared to the previous month and by 8% compared to the same month in the previous year.

Since April 2011, the processing industry was up 10.7% as gross series and 2.2% as seasonally adjusted series and the extractive industry increased by 0.4% gross series but dropped by 2.1% as seasonally adjusted series. Electricity thermal, gas, hot water and air conditioning production and provision decreased by 5.5% as gross series and by 2.7% as seasonally adjusted series. Five months' industrial production recorded a year on year growth of 8.9% gross and seasonally adjusted series.

According to the average opinions expressed by the Association of Finance and Banking Analysts of Romania, on a distinct note, in June consumer prices rose by 0.2%, like in the previous month, taking the annual inflation rate to 8.5%, slightly above the previous month's level.

Analysts' estimations regarding the monthly rise have ranged from 0.2% to 0.4%, while the annual inflation rate forecast varied from 8.4% to 8.6%.

According to INS data, the annual inflation rate went up from 8.34% in April to 8.41% in May, the monthly rate being 0.21% primarily because of the price rise for fresh fruits, potatoes, honey, sugar and water sewerage services.

AAFBR members anticipate an annual inflation rate of 5.4% (estimates range from 5.1% to 6.7%) for the end of 2011. The forecast suggests a slight increase compared to those a month ago and two months ago (5.3%), as well as three months ago (4.8%).

Specialists expect an inflation rate of 4.6% at the end of 2012 (estimates range from 4% to 5%), marking a new rise (last month expectations were 4.5%). The expected annual inflation rate at the end of 2012 has stabilized at a relatively high level (approximately 4.5% as compared to 3.5% at the beginning of the year).

The National Bank of Romania has revised its 2011 inflation forecast from 3.6% up to 5.1% and for 2012 from 3.2% to 3.6%. In Q2, the central bank expects an annual inflation rate of 8.7%. BNR had established an inflation rate of 3%, one percentage point for 2011 and 2012.

(Sourced from www.nineoclock.ro)