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 rose 3.4%, lower than the 3.8% year-over-year gain in January. The numbers were all lower than economists had expected.

Inflation slowed more than expected in February and cooled for the first time in four months, but that progress may be short lived as President Donald Trump ramps up his trade war, which threatens to increase prices for Americans.

Wholesale prices were unchanged in February, offering more evidence that inflation pressures eased somewhat in early 2025.

U.S. stock indexes rose Wednesday after Wall Street got some relief from an encouraging inflation update. But even on a rare up day for the market, President Donald Trump’s trade war still knocked stocks around.

Wall Street got some relief after an encouraging report said inflation slowed last month by more than economists expected. The S&P 500 rose 1.2% Wednesday, a day after it briefly