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According to the Labor Department data, the consumer price index (CPI) rose 5.4% in July, in line with June’s figure and representing the largest jump since August 2008. Furthermore, the International Monetary Fund (IMF) has warned that inflation could be persistent. But while high inflation poses a major threat for some industries, several industries are less susceptible to its consequences.
Therefore, we think it could be wise to invest in quality ETFs Energy Select Sector SPDR Fund (XLE), VanEck Vectors Gold Miners ETF (GDX), and Consumer Staples Select Sector SPDR Fund (XLP). They are less susceptible to the consequences of high inflation.
