All eyes are on the upcoming Consumer Price Index (CPI) report that’s likely to present a complex view of the current inflationary landscape. Though analysts expect an overall increase in inflation due to rising gas prices, they expect core inflation to slow down, alerting investors and policymakers. This scenario highlights the importance of wagering on inflation-proof that have historically been resilient against inflationary pressures. As the Federal Reserve weighs its options on adjusting interest rates, it’s imperative to embody that same cautionary spirit and invest in safe stocks. The balance between rising inflation and the potential for interest rate adjustments makes a compelling case for investing in inflation-proof stocks with robust long-term potential.

Inflation-Proof Stocks: Procter & Gamble (PG)

Procter & Gamble (NYSE:PG) is a titan in the world of consumer staples, and it stands out for its resilience against inflation. This is evident in its incredible financial results in the past year, with most of its top-and-bottom-line metrics ahead of their 5-year averages. With its massive global footprint and the myriad of timeless brands under its umbrella, PG remains an indispensable force in the realm of consumer products.

Its pricing power and robust execution were on full display last year, with year-over-year (YOY) sales growth of a heartening 4.55%, beating the sector median by 41%. 

Moreover, its net income margin of 17.60% is ahead of the sector median by a whopping 248%, a testament to its operational prowess. Additionally, its levered free cash flow (FCF) margin stands at an eye-catching 16%, ahead of historical and sector averages. Consequently, its dividend is firmly intact and has been growing for 67 consecutive years, positioning the firm as a ‘dividend king’. Also, its total return year-to-date (YTD) of 7.20% is nearly on par with the S&P 500’s gain of 9.53%.

Monster Beverage (MNST)

Monster Beverage (NASDAQ:MNST) is an industry leader in the production of energy drinks, with a diverse and loyal customer base globally. It has been an incredibly consistent player over the years, marked by healthy growth across both lines. More importantly, it has been a highly rewarding investment, boasting a total return of over 400% in the past decade. Hence, it has been one of the best stock picks over the past several years, with an enduring business model that continues producing high profits.

Despite stiff competition, Monster continues to dominate its market segment. Its strategic placement in the convenience channel and commitment to product innovation have made it a force to be reckoned with in its niche. Internationally, Monster continues to capture significant market share, with more than 50% of the energy drink industry’s potential lying beyond U.S. borders. Moreover, with its YOY metrics exceeding its historical performance, the company has proven adept in efficiently tackling inflationary pressures.

Applied Materials (AMAT)

Applied Materials (NASDAQ:AMAT) emerges as one of the leading inflation-proof stocks that play a critical role in the semiconductor space, a sector that’s powering the advancement of AI and other technologies. Its key role in enabling the production of the latest semiconductor devices reinforces its position as a stable and promising long-term investment. It also comes with a sweet dividend that has been growing for the past six consecutive years.

AMAT stock shot up almost 77% in the past year, and much of this is due to its role in powering the AI revolution. It provides the critical machinery, coatings, and electronic components that ensure the development of advanced semiconductors that propel AI innovations.

Its latest Q1 earnings print showed another top-and-bottom-line beat, a trend that’s persisted for the past seven consecutive quarters. In addition to outperforming analysts’ estimates across the board, the company has issued an optimistic forecast for the upcoming quarter. Additionally, its management has highlighted the evolving demand for sophisticated chips, which is pivotal for AI technologies.

On the date of publication, Muslim 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.