Worried About Inflation? Buy These 2 Forever Stocks Now
Consumer prices for everything from car rentals to airline fares are moving higher. The consumer price index, which includes the previously mentioned products and services, shot up by 4.2% in April 2021, from the same time last year. When prices for goods and services increase, it erodes the purchasing power of individuals. For example, if today with $100 you could get gas and groceries for a week, inflation could cause you to pay $110 for the same basket of goods a year from now.
Moreover, inflation could potentially reduce profits for businesses -- especially those that do not have the pricing power to raise prices on products and services when input prices go up. That's why if you are worried about inflation getting out of control, you should consider buying Coca-Cola (NYSE: KO) and Walt Disney (NYSE: DIS) stock. The two have the ability to increase prices on their products and services if inflation causes input prices to go up.
Inflation is picking up steam in the U.S. Image source: Getty Images.
Source Fool.com
