Inflation continues to soar:Us consumer price inflation rose to a record high in March as the conflict between Russia and Ukraine pushed up gasoline costs, reinforcing expectations that the Fed would raise interest rates by 50 basis points next month. The consumer price index rose 1.2 per cent in March from a month earlier, the biggest monthly increase since September 2005 and up from 0.8 per cent in February. CPI rose 8.5 per cent in March from a year earlier, the biggest year-on-year increase since December 1981, compared with a previous figure of 7.9 per cent and the sixth consecutive month of more than 6 per cent.

Consumer inflationary pressure is gradually increasing:The US consumer confidence index fell slightly in April to 107.3 from 107.6 in March. Us retail sales rose in March, mainly because gasoline prices hit an all-time high. Retail sales rose 0.5 per cent in March from a month earlier, down from 0.8 per cent in February. Excluding petrol, retail sales recorded-0.3% month-on-month. Online consumption also fell for the first time in more than a year.

Food costs rose, but spending on essential consumer goods rose for the third month in a row, while catering consumption fell:Sales of essential consumer goods rose 1.3 per cent month-on-month in March, up 9.5 per cent from a year earlier, mainly because prices of food and ingredients continued to rise amid supply chain disruptions and rising costs. As the rising cost of essential consumer goods has increased the proportion of residents' food expenditure, the share of catering consumption in total food expenditure is still lower than it was a year ago. The share of food and beverage spending fell 0.5 percentage points from a year ago, mainly because consumers are more likely to cook at home because of higher inflation. As food prices continue to rise, consumers are less willing to pay extra in restaurants for additional services.

Supply chain problems will continue to exist:As the conflict between Russia and Ukraine continues, inflation remains high, and the epidemic continues to spread in China, rising logistics costs have forced many companies to raise commodity prices. However, large retailers are still actively dealing with supply issues, including chartering ships to ensure a stable supply of inventory, and in terms of pricing, try to strike a balance between price increases for different categories of goods to get consumers to accept the overall price.

Investment advice:We believe that consumers will continue to buy essential consumer goods even if there is inflationary pressure. therefore,Large retailers with strong pricing and inventory management capabilities will perform well in the current market conditions.It is recommended to buy at a low price.$Walmart Inc (WMT.US) $、$Costco Wholesale Corp (COST.US) $And$Target Corp (TGT.US) $.