CNBC Daily Open: U.S. producer prices are flat — but they don't factor in imports

• Trump denies that he plans to fire Fed Chair Powell.
• U.S. stocks rise in a rocky day of trading.
• Wholesale prices in the U.S. were unchanged in June.
• Crypto bills stumble in Congress.
• Ether is starting to outperform bitcoin.

No one likes being the person who goes “but actually…”. Sometimes, however, it is necessary.

The U.S. producer price index in June was flat, meaning that wholesale prices remained stagnant from May to June. This might suggest that U.S. President Donald Trump's tariffs are hitting the economy less than feared, in contrast to what the uptick in June's consumer price index suggested.

But actually, the PPI measures prices at the level of the manufacturer — which is located in America. In other words, the index “does not include imports, because imports are by definition not produced by domestic firms,” according to the U.S. Bureau of Labor Statistics.

By contrast, the CPI considers all goods and services that the consumer purchases, regardless of their country of origin. As the BLS elaborates, “imports compose a substantial portion of the CPI especially within the apparel and new-cars component.” While newvehicle prices fell 0.3% in June, those of apparel rose 0.4%, suggesting that the effects of tariffs are starting to show in some components of the CPI.

But actually, we might not know the full effect of the tariffs until after Aug. 1 when the updated tariffs kick in — provided Trump keeps to the deadline this time.

What you need to know today

Trump denies that he plans to fire Jerome Powell. Hours after Trump told Republican lawmakers he will fire the Federal Reserve Chair, according to a source, the U.S. president said he's “not planning on doing it” and it's “highly unlikely.”

U.S. stocks rise in a rocky day of trading. Major U.S. indexes fell Wednesday on Trump's reported plans to fire Powell, but rebounded sharply after he denied them.The Stoxx Europe 600 retreated 0.57%, dragged down by a slump in ASML shares.

Wholesale prices in the U.S. were unchanged in June. The producer price index was flat for the month, compared with the Dow Jones consensus estimate of a 0.2% increase. On an annual basis, headline PPI was up 2.3%, the lowest since September 2024.

Crypto bills stumble in Congress. As of 5:30 p.m. ET, more than half a dozen Republicans had voted with all Democrats against letting two of the bills, which involve the regulation of cryptocurrency, proceed in their current forms.

[PRO] Ether is starting to outperform bitcoin. Since its April low, ether has shot up over 130%, more than two times the 60% jump in bitcoin over the same period. ETH has also broken out of a technical pattern, implying it could have a double-digit upside.

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