Immediately
The June consumer price index report indicated a 3.3% year-over-year increase in the core rate, compared with the +3.5% pace expected by economists and the +3.4% level seen in May.
The closely watched food category increased by 2.2% year-on-year in June, with food prices away from home up 4.1% and food prices at home up 1.1%. The pace of food inflation at home has been below the Federal Reserve's overall target rate of 2% for eight consecutive months, although the overall level of food prices remains elevated compared with two and three years ago.
Categories that showed notable moderation or decline in year-over-year inflation included rice (-2.4% year-over-year), ham (-2.4%), milk (-1.0%), cheese (-2.1%), apples (-12.0%), poultry (+0.3%) and coffee (-1.6%). Lower transportation and shipping costs in the U.S. have been a factor in moderating inflation for certain food groups. Consumer resistance to prices and package sizes has also impacted demand for certain foods. Categories with prices still increasing above the core inflation rate included butter (+6.9%), olives/pickles/condiments (+4.2%) and infant formula (+5.6%).
Quantitative look: Food and beverage stocks with the highest Seeking Alpha quantitative ratings include Vita Coco (COCO), PepsiCo (PEP), Keurig Dr Pepper (KDP), Coca-Cola (New York Stock Exchange:KO), BFR SA (BRFS), Tyson Foods (New York Stock Exchange:TSN), Pilgrim's Pride (PPC), Farmer Bros. Co. (FARM), Post Holdings (POST), Vital Farms (VITL), Whole Earth Brands (FREE) and Hershey Company (HSY).
