Inflation in the U.S. continues to rise, with the consumer price index (CPI) published by the Bureau of Labor Statistics last week coming in at a higher than expected 8.6% in May compared to a year ago. Key factors driving inflation higher include soaring energy and food prices made worse by the Russian invasion of Ukraine and supply-side constraints following the Covid-19 reopening. However, our theme of Inflation stocks – which predominantly includes companies from the banking, insurance, consumer staples, and energy sectors – has risen by about 9% year-to-date, considerably outperforming the broader markets.