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

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.

The Producer Price Index, a wholesale inflation gauge that is being closely watched for tariff-related impacts, showed that price hikes slowed substantially in February.