While high inflation is a significant concern for most investors, companies such as PepsiCo (NASDAQ:PEP), Whirlpool (WHR), and Tempur Sealy (NYSE:TPX) have been benefiting by passing higher costs onto their customers. So, if inflation persists, we think it could be wise to bet on these stocks to contribute to an inflation-proof portfolio. Read on. Several companies have been dealing with inflation by passing higher costs on to their customers through price hikes. The consumer price index increased 5.4% in June, its biggest monthly gain since August 2008. The rising cost of labor, raw materials, and other inputs are primarily responsible for the consumer price increases.
While Federal Reserve Chairman Jerome Powell reiterated recently that inflation is transitory, the International Monetary Fund (IMF) warned yesterday that inflation could be persistent. And while investors are worried about rising inflation, companies that are increasing the prices of their products are not expected to be significantly affected by an inflationary environment.
PepsiCo, Inc. (PEP), Whirlpool Corporation (NYSE:WHR), and Tempur Sealy International, Inc. (TPX) have been raising prices to offset increased costs. So, we think it could be wise to scoop up their shares to protect one’s portfolio from the impact of high inflation.