It's Time for Dollar General to Shine
The good news is the Federal Reserve is finally increasing interest rates to combat rampant inflation. The Fed's Open Market Committee opted to raise the Fed Funds Rate by a quarter of a point earlier this month, with several more rate hikes in the cards through 2024.
The bad news is the inflation these higher rates is meant to curb is already here and probably here to stay. Groceries cost, on average, 8% more than they did a year ago. New cars are 12% more expensive. Gasoline prices are nearly 40% above where they were at this point in 2021. And there's seemingly no end in sight for these soaring costs.
The rising-price backdrop is bad news for most companies and consumers. There are some retailers, however, built to thrive in this very situation. Dollar General (NYSE: DG) is one of them, and it's worth owning simply because inflation is already altering consumers' spending habits.
Source Fool.com
