Inflation Fried Frozen Potaters

With inflation clearly much higher than whatever is going to be reported tomorrow morning, the joke is on all of us--The consumers. We are paying far more than the 7% or so which economists will diligently seek to talk down as being no big deal, and as being no cause for alarm for the estimable Fed to "overreact."

In reality, The Fed is so far behind the inflation curve that they seem to have opted to appear as though they are actually in front of it. 

Ultimately, though, as we are in a midterm election year and the constituents pressure politicians up the chain as to their cost of living, pressure will mount for The Fed to be more decisive and aggressive in its tightening. 

In the meantime, I expect consumers to trade down, if you will, at the grocery store. Frozen potatoes, with Lamb Weston the leader of the pack, are a good place to start. Not only are they easier to prepare than fresh potatoes, but they likely will be cost effective as fresh produce prices only go up from here. LW, like other firms you find in the frozen food aisles, has stood the test of time due to their affordability, palatability (not so healthy for you), and convenience. 

In times of inflation, that matters even more. On the updated LW daily chart, below, a push above $67 or the 200-day moving average should give the name room into the $70s.