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However, the inflation rate for the 12 months that ended July came in at 4.2%, the highest rate since the first Gulf War in 1991. Moreover, according to the Labor Department data, the consumer price index (CPI) rose 5.4% in July, representing the largest jump since August 2008. Also, the producer price inflation (PPI) rose 7.8% for the 12 months that ended July, higher than economists’ expectations. While high inflation poses a threat for some industries, several industries are less susceptible to the consequences and benefit from rising inflation.
Therefore, it could be wise to invest in quality ETFs Vanguard Real Estate Index Fund ETF Shares (VNQ), iShares TIPS Bond ETF (TIP), and Invesco DWA Basic Materials Momentum ETF (PYZ) that are less susceptible to the consequences of high inflation.
