Payam Javan: ​In February 2025, the U.S. Producer Price Index (PPI), which measures wholesale inflation, remained unchanged from the previous month, defying market expectations of a 0.3% increase. This stabilization suggests easing inflationary pressures, with the annual wholesale inflation rate decreasing to 3.2% from January’s 3.7%. The flat PPI was influenced by a 0.3% rise in goods prices, notably a 53.6% surge in egg prices due to avian influenza, offset by a 0.2% decline in service costs and a 4.7% drop in gasoline prices. ​

Despite the positive inflation data, U.S. stock markets experienced declines, largely attributed to escalating trade tensions. President Donald Trump announced a potential 200% tariff on European wine, champagne, and other alcoholic beverages if the European Union does not lift its 50% tariff on American whiskey. This announcement has raised concerns about a potential trade war, overshadowing the easing inflation figures and contributing to market volatility. ​