Mentioned: Diageo PLC (DGE) , Lorillard Inc (LO) , Coca-Cola Co (KO) , Colgate-Palmolive Co (CL) , Avon Products Inc (AVP) , PepsiCo Inc (PEP) , Costco Wholesale Corp (COST) , Mondelez International Inc (MDLZ) , Procter & Gamble Co (PG) , The Kroger Co (KR)
- Commodity cost inflation looks set to moderate as the global economy appears to be slowing once again. We expect the food CPI to peak in July or August.
- The same drivers that are causing a pullback in commodities markets are likely to mean that consumer spending will remain strained for the remainder of 2011.
- Given the continued challenging environment, we believe that economic moats are more important than ever. We recommend investors stick to the best-in-class names that have the most pricing power in their categories.
To view this article, become a Morningstar Basic member.
Already a member? Sign in.
Philip Gorham does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.