Scared of Inflation? 3 Dividend Stocks That Can Slay Surging Prices
The market sold off violently on Wednesday, Nov. 10 after the October consumer price index rose 6.2%, more than expected. In fact, it was the highest annualized inflation figure since December 1990. Core inflation, which strips out food and energy prices, rose 4.6%, the highest since 1991.
Inflation can be a two-edged sword. Some inflation is good, as it allows the economy to grow and for wages to rise over time. However, too much inflation too quickly can eat away at customer purchasing power and can lead to rising interest rates.
Many think current inflation is transitory, a symptom of the economy doing much better than expected as we emerge from the COVID-19 pandemic, and that it will slow down once bottlenecks are eased. However, others think prices may rise at a higher rate for longer.
Source Fool.com
