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.

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.

Treasury Secretary Scott Bessent on Thursday also reiterated the administration's position that it's willing to tolerate market volatility.

The main U.S. stock indexes slipped on Thursday as President Donald Trump's escalated tariff rhetoric against the European Union impacted investor sentiment, although cooling inflation provided some relief.