Ghana's producer price inflation rose to 5.4 percent year-on-year in February, from 3.1 percent the month before partly due to an increase in petroleum prices, the statistics office said on Wednesday.

The rise is well below the figure for late 2014, when it stood at more than 48 percent. Mining and quarrying inflation stood at 19.7 percent in February compared with 18.6 percent in January. Manufacturing was 3.5 percent in February compared to 2.4 percent in January, while utilities were at 1.3 percent last month against -6.8 percent in January.

President Nana Akufo-Addo, who took power after winning an election in December, wants to boost private sector growth, create jobs and reduce rural poverty.

He plans to cut the budget deficit to 6.5 percent of gross domestic product in 2017, from 8.7 percent last year, and reduce inflation to 11.2 percent from 13.3 percent in January.

Economists say the government's full-year inflation target should still be achievable despite month-to-month fluctuations, but several analysts have cast doubt on whether the government can hit targets on revenue collection and deficit reduction.

The new government inherited an economy in worse shape than it expected and has said it will review a $918 million programme with the International Monetary Fund (IMF).

Ghana was for years one of Africa's fastest growing economies but growth slumped in 2014 due to a fall in global commodities prices and fiscal problems including elevated inflation, a high budget deficit and public debt.

Source:Nasdaq.com