The recent banking crisis has complicated the Fed’s fight against stubborn inflation. Amid an inflationary environment, grocery stocks could help hedge your portfolio due to the inelastic demand for their products. Thus, it could be wise to invest in fundamentally strong grocery stocks like Walmart Inc. (WMT) and Costco Wholesale Corporation (COST) now.
Despite the Fed’s aggressive interest rate hikes to fight high inflation, it remains elevated and is much above the 2% target. The Consumer Price Index (CPI) increased 0.4% in February and 6% year-over-year. Recent upbeat economic data releases indicating jobs growth and stubbornly high inflation increase the probability of more interest rate hikes.
