Feb 12 (Reuters) - German government bond yields rose on

Wednesday after U.S. economic data showed inflation was growing

more than expected, fuelling fears that the Federal Reserve

could slow down or stall its easing cycle.

Data from the Labor Department showed the consumer price

index rose 3% on an annual basis in January, versus the 2.9%

increase forecast by economists polled by Reuters. On a monthly

basis, the index rose 0.5%, compared with a forecast 0.3% rise.

German borrowing costs edged up to a one-week high before

the U.S. figures, as markets digested tariff developments,

comments from the U.S. Federal Reserve chair and a rise in

energy prices.

Germany's 10-year bond yield was last up 4.5

basis points (bps) at 2.47%, the highest since January 31.

Investors were also bracing for more tariff announcements,

with U.S. President Donald Trump's trade advisers finalising

plans on Wednesday for the reciprocal tariffs he has vowed to

impose on every country that charges duties on U.S. imports.

Italy's 10-year yield was up 4 bps at 3.57%.