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Credit Suisse: European stocks to buy to hedge inflation

ITV Studios is pictured at the MIPCOM trade show in Cannes, France, on October 17, 2017.

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Analysts at Credit Suisse have picked a slew of stocks that they believe will make good inflation hedges, after recent consumer price data in the U.S. saw its sharpest jump for more than a decade.

The Consumer Price Index measures the average price of a basket of goods and services including food and energy. Increasing inflation can cause market jitters due to its potential to raise costs, squeeze company margins and push central banks to taper their accommodative policies. But Credit Suisse’s analysts said a rate of up to 3% is “typically positive” for stocks.

The bank picked global stocks that are tied to the U.S. CPI and therefore have “guaranteed pricing power” and are potential inflation hedges, in a recent research note by a team led by Andrew Garthwaite. It also listed more than two dozen “cheap” picks “that are positively correlated with inflation expectations.”

Here are some of the bank’s picks: