Surging Prices Bode Well For These Stocks

Surging Prices Bode Well For These Stocks

Inflation, which has been surging in recent months, is poised to rise further as the ongoing war between Russia and Ukraine causes a sharp increase in commodity and energy prices. For perspective, U. S. benchmark crude prices have risen over 30% over the last month to about $120 per barrel, while wheat prices are up by almost 60% over the last month. While the U. S. consumer price index rose 7. 5% for January 2022, the most recent reported month, February numbers, which are due this Thursday, are likely to be still higher, with economists projecting 7. 8% year-over-year growth, per Dow Jones. It's likely that CPI inflation could rise further in March as the full impact of the war, which began in late February, is seen. Now the broader stock markets have fared badly this year, considering surging inflation, the ongoing war, and the prospect of multiple interest rate hikes by the Federal Reserve. The S&P 500 is down by over 9%, the Nasdaq-100 is down by about 16%, and high-growth, high-multiple sectors such as software and technology have seen even larger corrections. However, our theme of Inflation Stocks - which includes companies from the banking, insurance, consumer staples,