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.

As CPI report shows inflation continued at 2.8% in February, tariffs fueled worries of another recession, which President Donald Trump has declined to rule out.

U.S. consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war.

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.

U.S. inflation slowed last month for the first time since September even as additional tariffs on steel and aluminum kicked in Wednesday that could send prices higher.

The rate of price increases on U.S. consumer goods and services dropped bit in February but are now likely headed the other way because of President Donald Trump's trade levies.

Wall Street markets have rebounded after America’s inflation numbers in February cooled more than expected. Sky News Business Reporter Edward Boyd noted that February is the last month where the “tariff effect” won’t be seen on the inflation figures.