Why is the Wesfarmers share price beating the ASX 200 today?

Inflation and interest rates are the talk of the town today, but they're not putting a dint in the Wesfarmers Ltd (ASX: WES) share price.

In fact, the stock is in the green, alongside its home sector – the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ).

Right now, the Wesfarmers share price is trading 0.68% higher at $47.07. Meanwhile, the consumer discretionary sector is gaining 0.43%.

On top of that, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ), with which Wesfarmers closely aligns, is leading the market, gaining 0.94%.

For comparison, the broader S&P/ASX 200 Index (ASX: XJO) is falling 0.45%.

Could Wesfarmers be an inflation winner?

The Wesfarmers share price is outperforming the broader market on Tuesday as the Reserve Bank of Australia announces the result of its August meeting.

The entity has upped Australia's official interest rate by 50 basis points to 1.85% in a bid to help control inflation in the nation.

But Wesfarmers might be better prepared than most to weather the effects of soaring inflation.

That's because of its consumer staples-adjacent position.

Consumer staples can generally weather poor times because they are, well, staples. Customers can't simply forego splashing out on necessities when times are tough.

That might be one reason Warren Buffett has allocated 10% of Berkshire Hathaway's portfolio to the sector.

While Wesfarmers itself isn't a 'staple' stock, many of its businesses arguably fit into the category.

For one, it holds a 2.8% interest in Coles Group Ltd (ASX: COL). The supermarket giant has been tipped as an inflationary buy by brokers.

Its retail brands like Bunnings and Kmart also sell plenty of products consumers need, rather than want. So does the company's newly acquired Priceline business.

Thus, the Wesfarmers share price could be buoyed by today's uncertainty.

Wesfarmers share price snapshot

Its conceivable potential as an inflation hedge hasn't managed to save the stock over recent months.

The Wesfarmers share price is currently 21% lower than it was at the start of 2022. It has also fallen 24% since this time last year.

For comparison, the ASX 200 has dumped 8% year to date and 7% over the last 12 months.