Inflation unexpectedly falls! Here are the ftse actions that could win and lose

This morning (March 26) the United Kingdom inflation data for February came out. Revealed a surprise drop from 3% last month to 2.8%, giving an impulse to the Ftse 100 and Ftse 250 in the morning. However, these data and implications will cause different reactions for some FTSE sectors and stocks. Here is one that I think could work well, along with one that could fight.

Increasing benefit margins

Tesco (LSE: TSCO) It is a company that could really benefit from the inflation of the lowest trends in the coming months. One of the key components that enters the consumer price index for inflation is groceries and other daily goods than Tesco's actions. Store customers are sensitive to price increase. As a result, when inflation is very high, Tesco experiences less demand. This was something we saw for 2022, when it rose above 10%.

On the other hand, there has been part of the rally of the price of 12% shares in the last year, since inflation has shown signs to control again. The annual results of 2024 mentioned how the net concern for customer inflation has now dropped to 50% from 70% at the beginning of the
year.

From a financial perspective, the report spoke about an approach to the growing absolute gains while the margins are maintained. One way to seek to do this is for “Direct productivity initiatives that at least compensate for inflation in the medium term”. This shows me that the business has learned by the problems caused by the increase in prices in 2022 and is taking measures to address this in case inflation increases in the coming years.

A risk is the hard competition in this sector. Supermarket chains have thin benefit margins at best, so any cost increase could turn the business of a loss gain.

Pressure on prices

National grid (LSE: NG) It is a company that could fight with low inflation. This may sound strange, but listen to me. As Energy Services Company, National Grid's income is often linked to inflation through regulated price controls. The lowest inflation can lead to reduced allowed price increases, which can affect the growth and profitability of income.

When inflation increased in 2022, energy companies such as National Grid were pressed by some who believed that companies obtained excess profits as part of passing higher costs to customers. This was not illegal and was inside Gem Price Control frames. But it certainly helped the national network financially.

The other face could also be true if inflation continues to fall. Without much maneuvering margin in price increases, National Grid could see stagnant income. Of course, a risk for this pessimistic vision is that income could grow organically. If the business can enjoy a successful marketing campaign or a customer acquisition impulse, income could grow that way.

The action has dropped a modest 2% in the last year, with a dividend yield of 5.84%.

In general, I stay away from the national network at this time, but I feel that investors may want to consider Tesco's actions as an idea of ​​inflation for a portfolio.