Core inflation is now rising at its fastest pace in 16 years. Which companies are best able to navigate this treacherous trend?
Core inflation, which strips out volatile food and energy prices, rose twice as fast as expected and hit its fastest annual pace in more than 16 years, the Labor Department reported Tuesday.
"Nothing here bodes well for consumers." said Joel Narof, president at Naroff Economic Advisors in Holland, Pa. "It's putting more pressure on businesses to raise their costs. This is problematic in an economic slowdown we are in right now."
In this kind of environment look for irreplaceable inputs, adds River Twice Research president Zach Karabel. I mean things people absolutely have to have.
Iron ore is a good example because you can’t make steel without iron ore. My trade is iron ore producer Vale .