FILE – Shoppers guide their carts through the milk display in a Costco warehouse Thursday, Jan. 23, 2025, in Sheridan, Colo. (AP Photo/David Zalubowski)

WASHINGTON (AP) — U.S. wholesale inflation decelerated last month, suggesting that price pressures are easing for now.

The Labor Department reported Thursday that its producer price index — which tracks inflation before it reaches consumers — was unchanged from January after rising 0.6% the month before. Compared to a year earlier, producer prices were up 3.2%, down from a year-over-year gain of 3.7% in January.

Excluding volatile food and energy prices, so-called core wholesale prices fell 0.1% last month from January, first drop since July. Core producer prices were up 3.4%, down from a 3.8% year-over-year gain in January.

But the progress against inflation may not last.

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% taxes — tariffs — on foreign steel and aluminum and has plastered 20% levies on Chinese imports. In coming weeks, he is set to impose 25% tariffs on Canada and Mexico and to introduce “reciprocal tariffs” that match higher taxes that other countries slap on U.S. products.

On Wednesday, the Labor Department said that consumer price inflation slowed last month for the first time since September. The consumer price index was up 2.8% from a year ago, down from a 3% year-over-year increase in January. Core consumer prices rose 3.1% from a year earlier, smallest increase since April 2021.

Gasoline prices fell 4.7% last month. Food prices rose 1.7% from January to February, led by a 28% surge in the price of eggs.

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