Wholesale Producer Price Index inflation stayed flat in February while economists surveyed by Dow Jones had expected a 0.3% increase. The Bureau of Labor Statistics said Thursday PPI inflation was 3.2% for the 12 months ended in February.

Americans just got some reassurances that inflation was slowing, and not reaccelerating, last month. The Producer Price Index, a wholesale inflation gauge that is being closely watched for tariff-related impacts,

PPI went unchanged in February following considerable increases in January and December, driven by a decline in final demand services.

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.

Inflation eased last month, but the data may offer less comfort to businesses, consumers and the Fed than it otherwise would as looming tariffs may keep prices rising.

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