A 6.5% Increase in the Producer Price Index Is No Match for Coca-Cola Stock
Investors seeking defense against rising producer prices need not look any further than Coca-Cola.
A 6.5% Increase in the Producer Price Index Is No Match for Coca-Cola Stock
Overview
Perhaps lost in the shuffle of the June 11 risk-on equity market rally -- one fueled in part by the White House saying it nixed military strikes against Iran -- was the May reading of the Producer Price Index (PPI) released early in the day.
The report wasn't pretty. It showed a 1.1% increase, meaning the wholesale inflation rate over the prior 12 months was 6.5%, the highest level since November 2022. Typically, companies' higher input costs are passed on to shoppers, suggesting some vulnerability for consumer staples stocks. That's not the case across the board. Just look at Coca-Cola (NYSE: KO).
Coca-Cola is one consumer stock with buffers against rising producer prices. Image source: Getty Images.
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Originally published at www.fool.com.
