Which stocks should you choose amid high inflation?

3 min read | August 17, 2022 06:21 AM EDT | By Abhishek Sharma

Which stocks should you choose amid high inflation? — Image source: © 2022 Kalkine Media®

Highlights:

UK inflation has touched 10.1% in July, the highest since 1982.

The latest data came a day after the ONS said that real wages for UK workers fell 3% in the quarter to June.

Inflation in the UK has been breaking 40-year-old records for a few months, and the situation is no different for July. As per the latest data from the Office for National Statistics (ONS), inflation reached double digits in July, hitting a fresh high since 1982.

The consumer price index (CPI) for the 12 months to July touched 10.1%, surpassing projections of 9.8% most economists had made. This is significantly higher than 9.4% in June and 9.1% in May, indicating that millions of Brits are facing a huge squeeze on their pockets.

According to ONS, the largest upward contribution to the high inflation was made by rising food prices.

Image credit: ©Kalkine Media®

The latest inflation figures come a day after the ONS said that the real pay of UK workers fell 3% in the quarter to June. While regular wages, including bonuses, grew by 5.1% during the period, the wages excluding bonuses grew by 4.7%.

During economic uncertainties, investors look for stocks that tend to remain stable in such times. To maximise their returns, investors can explore the below stocks selected by Kalkine Media®.

British American Tobacco Plc (LON:BATS)

UK-based tobacco products maker, British American Tobacco, on Wednesday was enjoying a market cap of £76,705.19 million. With investor preferring tobacco-related stocks during economic uncertainties or recessions as they have steady demand regardless of the economic conditions. The past year, BATS has provided investors with a return of 28.32%. It has earnings per share of 2.97. BATS shares were rallying by 1.20% and was trading at GBX 3,446.50 on 17 August.

Imperial Brands plc (LON:IMB)

Another leading tobacco brand Imperial Brands was witnessing a jump of over 20% in the last 52 weeks, and the year-to-date return is slightly over 18%. The stock currently has an EPS of 3.00. With a market cap of £18,086.27 million, shares of Imperial Brands were trading at GBX 1,912.00, up 0.47% as of 10:27 am GMT+1 on 17 August.

Reckitt Benckiser Group Plc (LON: RKT)

Reckitt Benckiser is a British multinational consumer goods company with several popular brands like Dettol, Mortein, Strepsils etc. under its portfolio. RKT currently holds a market cap of £46,928.65 million. Its 12-month return stands at 17.26% at present, and the stock was trading 0.12% higher at GBX 6,566.00 as of 10:31 am GMT+1 on 17 August.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.