Inflation is a major factor for the bear case of 2022. This morning, data came in from January’s consumer price index (CPI). Unfortunately, the news wasn’t good. As a result, inflation 2022 continues to be on the minds of investors and consumers everywhere.
Today’s results revealed that the CPI rose 7.5% year-over-year (YOY). This was above expectations of a 7.3% increase YOY. Indeed, this figure represents the fastest increase since 1982. During January, food and energy costs were major contributors to the increase in CPI. However, if food and energy costs were taken out of the data, CPI still rose by 6% YOY, which was above analysts’ expectations of 5.9%. Based off of January’s CPI data, the probability of a 25 to 50 basis points rate hike in March has been heightened.
As a result, investors are wondering where to invest their money during a high inflation environment.
Inflation 2022 Stocks to Watch: Food Stocks
Seeking Alpha highlights that prices for meat, poultry, fish and eggs have risen 12.2% YOY. Driven by increased costs of shipping and inflation, these three names may be a good bet for 2022.
Prices in the furniture and bedding category have increased by 17% YOY amid supply chain issues. However, a reopening of the economy could further propel these furniture names and their retail offerings.
- Tempur Sealy International (NYSE:TPX)
- La-Z-Boy (NYSE:LZB)
- Sleep Number (NASDAQ:SNBR)
- Ethan Allen Interiors (NYSE:ETD)
Inflation 2022 Stocks to Watch: Transportation Stocks
New auto vehicle prices have risen by 12.2% YOY amid a global chip shortage and high demand. In addition, the average listed price for used cars in January was higher by an astonishing 40% YOY.
The average price for a stay away from home skyrocketed higher by 20.5% YOY. Like furniture stocks, these lodging names may incur a boost from the reopening of the economy.
- Hilton Worldwide (NYSE:HLT)
- Hyatt Hotels (NYSE:H)
- Airbnb (NASDAQ:ABNB)
- Marriott International (NASDAQ:MAR)
Inflation 2022 Stocks to Watch: Auto Rental Stocks
The price to rent a car or truck increased 29.3% YOY. Like transportation stocks, auto rental stocks were affected by a global chip shortage. As demand returns, auto rental stocks may see increased demand.
Sporting Events Stocks
Prices for admission to sporting events have increased by 23.5% YOY. The two names below may benefit from a reopening of the economy as more fans feel safe attending sporting events.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.