April’s Consumer Price Index (CPI) report showed that inflation cooled for the 10th consecutive month, with prices rising 4.9% year-over-year. Despite cooling down, inflation still remains above the Fed’s 2% target. The high inflation, strong jobs market, and tighter lending standards will likely push the economy into a recession.
Grocery stocks perform steadily during economic uncertainty as groceries are essential commodities that enjoy an inelastic demand. Therefore, amid fears of an impending recession, it could be wise to buy fundamentally strong grocery stocks Albertsons Companies, Inc. (ACI), Village Super Market, Inc. (VLGEA), and Natural Grocers by Vitamin Cottage, Inc. (NGVC).
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