is typically a bad event for the stock market. When inflation rates rise, the Federal Reserve begins to raise interest rates in hopes of cooling off the economy. However, one of the impacts of rising interest rates is a decline in the stock market.
First, regardless of what happens in the economy, people need to eat. Because food is a necessity, the higher costs of groceries from inflation can easily pass on to the consumer. For example, if you are looking to buy a swimming pool and the price jumps 15%, chances are you will wait to buy until there is a sale or the price comes down. But if you go to the grocery store and the cost of milk is 15% higher, consumers still buy it. You might buy less, but you still need milk.
With a diverse range of stores, which include several discount markets, Kroger can keep its customers returning as prices rise.Walmart is a hybrid play in the grocery store sector. Yes, they sell groceries, but they also sell electronics, clothing, personal care items, household goods and more. And as a discount retailer, they attract consumers because of their low prices.
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