The Consumer Price Index (CPI) increased 9.1% year-over-year in June 2022, marking a new multi-decade high. The Fed’s indication of a 75 basis-point interest in its meeting next week to fight inflation and the possibility of many more hikes this year have increased the odds of the economy tipping into a recession.
According to economists polled by Reuters, the chances of the economy tipping into a recession over the next 12 months have increased to 40%. Therefore, the consumer staples sector could be the ideal investment destination for investors. Inelastic demand helps consumer staples companies perform steadily in any business cycle.
