March’s Consumer Price Index (CPI) report revealed that inflation continues to ease. The CPI rose 0.1% for the month and 5% annually, marking its slowest annual increase since May 2021. Despite the progress in bringing inflation down, it remains above the Fed’s target. The Fed will likely go ahead with further rate hikes this year, fuelling the chances of a recession later this year.
Grocery stocks perform well during economic uncertainty as groceries fall under non-discretionary expenditure. In addition, grocery retail companies are benefiting from the high demand for clean eating. To that end, it could be wise to take a look at grocery giants BJ's Wholesale Club Holdings, Inc. (BJ), Sprouts Farmers Market, Inc. (SFM), and Natural Grocers by Vitamin Cottage, Inc. (NGVC).
