Stocks That Benefit From Surging Inflation And The Coming Rate Hikes

Stocks That Benefit From Surging Inflation And The Coming Rate Hikes

Inflation in the United States continues to surge with the consumer price index published by the Bureau of Labor Statistics rising 7% in December 2021, the largest 12-month increase since June 1982. The inflation metric also rose 0. 5% from November levels. The increase was driven by higher prices for housing, used vehicles, and food, although energy prices moderated a bit in December after seeing a big increase through much of 2021. The core CPI, which excludes energy and food, jumped 5. 5% on a year-on-year basis, marking the highest levels since 1991. Prices have generally been trending higher due to the supply side disruptions and bottlenecks caused by the pandemic, shortages in the labor market, and also by unprecedented demand for goods and services following the easing of lockdowns. Now the recent surge in daily U. S. Covid-19 infections to about 760, 000 over the last week, driven by the spread of the highly infectious omicron virus variant, could further disrupt supply, continuing to put pressure on inflation. That being said, it's now a given that the Federal Reserve will follow through on its plans of multiple interest rate increases this year, with the first hike likely seen in