Euro zone government bond yields rise after US data

By Harry Robertson and Stefano Rebaudo

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 DE10YT=RR 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 IT10YT=RR was up 4 bps at 3.57%.