Inflation accelerated in May, with the consumer price index (CPI) rising 8.6% from a year ago, marking the highest increase since December 1981. Given the continued supply chain disruptions, inflation is expected to surge further despite the Fed’s interest rate hikes. Treasury Secretary Janet Yellen told senators that she expects the inflation to remain high for the rest of 2022.
Since inflation is expected to remain high in the upcoming months, consumer staples stocks are attractive investments because of the inelastic demand for their products. While several companies are struggling financially amid surging commodity prices, grocery chain companies are well-positioned to pass on high costs to consumers and stay afloat.
