Inflation has shown signs of cooling as consumer prices in March rose at the slowest pace since May 2021. Easing inflation is driving optimism, but consumers are still jittery about spending. The annual personal consumption expenditures (PCE) eased from 5.1% in February to 4.2% in March.
Although consumers are cutting back on spending, the demand for luxury goods remains high. Given the strong demand the luxury industry is witnessing, I believe it could be wise to buy fundamentally strong luxury stocks Inter Parfums, Inc. (IPAR) and Steven Madden, Ltd. (SHOO).
