BA., SHEL, BP.- Stocks to watch as inflation levels skyrocket

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BA., SHEL, BP.- Stocks to watch as inflation levels skyrocket

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 BA., SHEL, BP.- Stocks to watch as inflation levels skyrocket
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Highlights

  • Consumer prices index is expected to surpass the 18% mark in the first quarter of 2023, as per Citi group.  
  • Meanwhile, the inflation rate of retail prices index is anticipated to hit 21%.
  • The Conservative leadership candidates are under enormous pressure to proclaim how they are planning the tackle the mounting inflationary pressures.

As the energy crisis is worsening, consumers are witnessing even higher inflation levels. According to the US-based financial services group Citi, the consumer prices index (CPI) is expected to surpass the 18% mark in the first quarter of 2023. Meanwhile, the inflation rate of retail prices index is anticipated to hit 21%.

The estimates of Citi are substantially greater than the earlier predictions of soaring costs. Earlier this month, the Bank of England (BoE) had given an estimate that inflation level would hit 13% by the end of 2022, while the Resolution Foundation thinktank has recently given an estimate that the inflation level may touch 15% by the initial months of next year.

                                                          ©2022 Kalkine Media®

If the prediction comes true, it won’t be the first time UK inflation level hit the 18% mark. The last time inflation touched 18% was in 1976, when the global economy was struck by an oil supply shock, which pushed Britain to ask for a bailout from the International Monetary Fund (IMF).

The Conservative leadership candidates are under enormous pressure to proclaim how they are planning the tackle the mounting inflationary pressures. Liz Truss, without talking about inflation, declared her plan on Monday night to put the West Midlands at the heart of the country’s economic recovery.

Rishi Sunak announced his own strategies to turn the UK into a science superpower and to substitute the Horizon research programme. However, his campaign had previously cautioned that Truss’s proposals for tax reductions may generate an inflation spiral. According to labour, the entire world is struggling with rising inflation, but the UK is among the worst sufferers due to the mismanaged conservative leadership.

Amid the ongoing political conflicts and the soaring inflation, UK investors can gain by investing in these 3 inflation-proof stocks suggested by Kalkine Media®.

BAE Systems plc (LON: BA.)

The shares of the business engaged in arms, security, and aerospace, BAE Systems plc, were down by 0.20%, trading at GBX 806.80, at around 8:15 AM (GMT+1) on Tuesday. Holding a market cap of £25,360.03 million, the FTSE 100 constituent has a P/E ratio of 18.65 and is currently offering an annual dividend yield of 3.2%. The company has a positive EPS (earnings per share) of 0.55, and as of 23 August, it has offered its shareholders positive returns on both annual and year-to-date basis, standing at 40.10% and 46.27%, respectively. Its turnover (on book) presently stands at £2,948,890.07.

Standard Chartered plc (LON: STAN)

The shares of the prominent British banking firm, Standard Chartered plc, were trading at GBX 591.20 at around 11:20 AM (GMT+1) on Tuesday. Holding a market cap of £17,440.40m, the FTSE 100 constituent is currently offering an annual dividend yield of 1.9%. The company has a positive EPS of 0.61, and as of 23 August, it has offered its shareholders positive returns on both annual and YTD basis, standing at 32.19% and 31.98%, respectively. Its turnover (on book) presently stands at £6,586,512.94.

BP plc (LON: BP.)

The BP plc shares were up by 0.68%, trading at GBX 452.05, at around 8:26 AM (GMT+1) on Tuesday. With a market cap of £84,773.01 million, the FTSE 100 constituent has a is currently offering an annual dividend yield of 4.2%. The company has a positive EPS of 0.38, and as of 23 August, it has offered its shareholders positive returns on both annual and YTD basis, standing at 57.18% and 36.90%, respectively.

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