3 Stocks to Buy When Inflation Is High

Consumer prices rose 8.6% in May, according to the Bureau of Labor Statistics, and there's no telling when the increase in prices will stop. Supply chain issues, increased money supply, and low interest rates have fueled inflation, and the worry is that it will be hard to stop. 

As investors, one of the best ways to combat inflation is investing in companies that have the pricing power to pass additional costs on to customers, or that may even see inflation as a tailwind. I think Apple (NASDAQ: AAPL), MGM Resorts International (NYSE: MGM), and Verizon Communications (NYSE: VZ) all have a lot going for them in an inflationary environment. 

Companies are going to react to inflation pressure in different ways. Some will reduce spending to lower input costs (restaurants), others will need to eat the added cost because they're in a competitive market (hotels), and others will be able to pass additional costs on to the customers because they have pricing power. 

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Source Fool.com