Consumers Are Still Buying Procter & Gamble's Products Despite Inflation Fears
Wall Street and the broader media have a bad habit of taking a story and hyping it up to such a degree that it distorts investor views and actions. The internet stock bubble and the housing bubble are big examples, but there are also smaller ones like the Y2K bug that amounted to nothing at all despite all the headlines and coverage.
Inflation is likely to be another big story that doesn't actually turn out to be as bad as feared. Consumer staples company Procter & Gamble (NYSE: PG) is a great example of why that's likely to be the case. Let's take a closer look:
Inflation can't simply be brushed aside. It is a notable problem and it is increasingly evident to consumers as they buy everyday products they need. During Procter & Gamble's fiscal first-quarter 2022 earnings conference call, management made a point to say that "inflationary pressures are broad-based and sustained." The company is seeing rising costs for shipping, labor, and materials. It's also witnessing situations in which labor constraints are making it difficult to deliver products in a timely fashion. The impacts of inflation are very real.
Source Fool.com
