As inflation rises, so does the cost of living. In turn, this makes it more difficult for people to afford necessities like food and gas. However, one way that investors can protect themselves from inflation is by investing in inflation-proof consumer stocks.

Overall, as one would expect, inflation-proof stocks are investments that tend to do well during inflationary periods. They’re also a good way for investors to hedge against inflation, which has become a hot topic.

The Federal Reserve has taken the initiative and made the first of seven interest rate hikes official. The markets have reacted favorably to the move — something most observers were not expecting. Many experts think this could be because the markets believe inflation is a menace that needs to be tackled. Therefore, the hike makes sense.

Nevertheless, regardless of where the markets end up, you have to consider your own portfolio’s health. Last year, it was all the rage to invest in volatile growth stocks. However, investors now seem to be retreating to safer, known performers.

So, with that in mind, take a look at these seven inflation-proof consumer stocks that can safeguard your portfolio against volatility.

• PepsiCo (NASDAQ:PEP)
• Walmart (NYSE:WMT)
• Tyson Foods (NYSE:TSN)
• Procter & Gamble (NYSE:PG)
• Kraft Heinz (NASDAQ:KHC)
• Coca-Cola (NYSE:KO)
• Costco (NASDAQ:COST)

Now, let’s dive in and analyze each one.

Inflation-Proof Consumer Stocks: PepsiCo (PEP)

Collectively, PepsiCo has a wide range of products, including beverages, snacks and various foods. The company operates globally in more than 200 countries, including the U.S., Canada, Argentina, Brazil, China, India, and Japan. And it has been named one of the most successful companies globally.

PepsiCo is a diversified food and beverage company that owns Pepsi-Cola, Gatorade, Quaker Foods, Frito-Lay and more. These products are not huge stress on the wallet, which is why the company can do well during times of inflation.

Moreover, the company exceeded last quarter’s revenue expectations by $1 billion. Frito-Lay, in particular, was a bright spot, with an organic revenue increase of 13% for the most recent quarter.

In addition, PepsiCo’s history of consecutive quarterly dividend increases since 1965 demonstrates its commitment to its shareholders. That said, Pepsi expects to return about $7.8 billion to shareholders in the coming year through share repurchases and dividends.

Walmart (WMT)

Walmart is one of the largest retail chains in the world. It operates a chain of stores, supermarkets and e-commerce websites in various countries.

However, Walmart’s success is not just because of its company size or the number of locations. Instead, it’s their marketing strategies that have helped Walmart and its platform grow to what it is now.

Furthermore, the company generated $152.9 billion in revenue and $5.9 billion in consolidated operating income during the fourth quarter. Also during last year, Walmart managed to do progressively well as restrictions ended, and people were able to travel to their local Walmart store and shop for their essentials. Issuing guidance, Walmart expects total sales to go up by about 4% and U.S. same-store sales to increase by a little more than 3%.

Inflation-Proof Consumer Stocks: Procter & Gamble (PG)

Procter & Gamble is a multinational consumer goods company that produces a wide range of products for the household, personal care, pet care markets and more. For example, P&G’s product categories include beauty, baby care, feminine care, fabric, home care, hair color and styling products, skin color, and personal cleansing products.

Therefore, as you can tell, the company has a worldwide reach. So, if you are looking for a diversified company to add to your portfolio, look no further than Procter & Gamble.

Although there have been disruptions in the supply chain, net sales amounted to $76.1 billion last year, rising 7% over the year-ago numbers. Also, the company offers a 2.3% dividend yield, which is very juicy in its sector.

Tyson Foods (TSN)

Tyson Foods is one of the largest poultry, meat, and pork companies globally, with headquarters in Springdale, Arkansas. It is the second-largest processor and marketer of meat products after JBS S.A (OTCMKTS:JBSAY).

The company’s operations cover a wide variety of business areas that are vital to Tyson’s success. This includes the production of cattle, contract farming, feed production, processing, marketing and more.

Moreover, revenues increased by 23.6% during the last fiscal quarter, and net income grew by nearly 140%. This is an impressive achievement for the company and puts it in a great position for the coming year.

Inflation-Proof Consumer Stocks: Kraft Heinz (KHC)

Kraft Heinz has gone through many acquisitions, including J.M. Smucker Company and Oscar Mayer Foods Corporation. Kraft Heinz is currently headquartered in Pittsburgh, Pennsylvania, with offices worldwide in countries like China, Japan, Brazil and Mexico, among many others.

Overall, Kraft uses machines to produce food for consumers to enjoy. For example, it creates cheese for people to put on their sandwiches or as a snack with crackers. Kraft also makes condiments — like ketchup and mayonnaise — and provides macaroni and cheese in individual packages for people who want an easy meal at home.

During the most recent quarter, the company’s net income went up from $356 million to over $1 billion last year. While sales amounts were about the same as a year ago, it increased net income because of divestitures and changes in international currency rates. The company has major plans for the future; it believes it will deliver $2 billion of gross efficiencies that it can use to fuel future growth.

Coca-Cola (KO)

Coca-Cola has grown into one of the leading brands in the world, and is not only recognizable for its range of carbonated drinks but also other drink types. In fact, it owns around 200 total brands, including ones like Fanta, Sprite and Powerade.

Coca-Cola has been on a long journey from being a small business to becoming one of the largest companies in the world. It has faced many challenges such as competition, marketing, and economic events. Still, though, it has always been able to adapt and maintain its position as one of the most successful companies in history.

Last year, revenues increased to $38.7 billion, and organic revenues grew by 16%. It also reported a profit of $2.41 billion, up from $1.46 billion the year before. Coke predicts around an increase of 5% to 6% for earnings per share (EPS) and 7% to 8% in 2022.

Inflation-Proof Consumer Stocks: Costco (COST)

In times of inflation, it’s harder for the average American to make ends meet. This is where retailers like Costco come in. The firm can sell goods for much cheaper prices than its competitors, which means Americans can still buy the things they need without worrying about breaking the bank.

During the first quarter of fiscal 2022, revenue and profit increased. The top line jumped 16.7% to $49.4 billion, while Costco posted a net income of $1.3 billion for the last quarter.

So, if investors are search for inflation-beating stocks to buy, COST stock should be at the top of your list.

On the publication date, Faizan Farooque did not have (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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.