The Producer Price Index, a wholesale inflation gauge that is being closely watched for tariff-related impacts, showed that price hikes slowed substantially in February.

(Reuters) - German wholesale prices rose by 1.6% in February compared with the same month last year, according to data released by the federal statistics office on Friday. The office offers more detailed economic data on its website. Copyright 2025 Thomson Reuters.

Core wholesale prices, which exclude volatile food and energy costs, declined by 0.1 per cent from January—marking the first monthly decrease since July. On a yearly basis, core prices rose 3.4 per cent, down from 3.8 per cent in January, indicating a gradual cooling of inflationary pressures.

While the overall producer price index came in flat, prices for goods increased by 0.3% in February, while services costs declined by 0.2%. On an annual basis, the PPI increased by 3.2%, down from 3.7% a month earlier. The flat reading for February beat expectations of economists, who had forecast an increase of 0.3% for the month.

U.S. wholesale inflation decelerated last month, suggesting that price pressures are easing for now. But the progress may not last as President Trump intensifies his trade wars. The Labor Department reported Thursday that its producer price index — which tracks inflation before it reaches consumers — was unchanged from January

U.S. inflation saw an incremental decrease in February, inching down to a 2.8% annual rate, below January's 3% level and a reading lower than most economists were expecting for the second month of the year.

The readout comes as President Donald Trump ramps up his trade war with a wide range of U.S. trade partners, threatening to send inflation higher. He has effectively imposed 25% t