This Inflation Measure Just Hit a 14-Month High. These 3 Stocks Are Smart Picks if Inflation Persists.
The Bureau of Labor Statistics released the Producer Price Index (PPI) earlier this month, which measures the price changes for goods and services at the wholesale or producer level. This important metric could indicate where future consumer price inflation may be heading and increased 0.7% month over month in August, the highest monthly change since June 2022.
The PPI is widely considered a leading indicator because it shows pricing pressures in the production process before reaching consumers. The recent increase was above economists' projections and could indicate that inflation is stickier than expected. If that is the case, three smart stock picks to help hedge against inflation are Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Progressive (NYSE: PGR), and Costco (NASDAQ: COST).
Investors are likely familiar with Berkshire Hathaway's long history of investing success under CEO Warren Buffett. Since becoming CEO in 1965, Buffett's Berkshire Hathaway stock has delivered returns of nearly 20% annually -- doubling that of the S 500 index.
Source Fool.com
Berkshire Hathaway Inc. A Stock
Our community is currently high on Berkshire Hathaway Inc. A with 3 Buy predictions and 0 Sell predictions.
With a target price of 650000 € there is a slightly positive potential of 7.97% for Berkshire Hathaway Inc. A compared to the current price of 602000.0 €.
