Inflation News: 3 Hedges to Protect Your Wealth as Purchasing Power Dwindles

Inflation is in the news a lot lately, because it's still high. According to the March inflation report from the Bureau of Labor Statistics (BLS), prices were up 3.26 percent over the year prior, partly because of a sharp increase in gas prices.

As inflation goes up, your ability to buy something goes down. It's easy to feel it, whether it's your cereal costing more or the price of getting your hair cut suddenly shooting up.

Inflation, according to the International Monetary Fund, is the "rate of increase in prices over a given period of time." It represents how much more costly goods and services have become over a set period of time. "Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country," they add.

So, inflation is up, and your purchasing power down. But, there are ways to protect your wealth, and they're called hedges.

Hedges to Protect Your Wealth Amid Inflation

A hedge, according to Investopedia, is "an investing strategy that aims to reduce risk by taking an opposite position in a related asset." Let's get into a handful of hedges that can help keep the value of your money high.

Gold and Commodities

Gold can be a hedge, or "safe haven asset," amid inflation.

"Gold tends to perform better during times of extreme or unexpected inflation, as well as heightened geopolitical volatility," Michael Zarembski, director of futures trading at Charles Schwab, says in a feature about the metal.

Goldman Sachs adds that "gold may be the best hedge against inflation and geopolitical risks," which is quite the endorsement.

Commodities can also serve as a hedge, including gas, oil, agricultural products and other metals, according to the experts at Investopedia.

High-yield Bank Accounts and CDs

Want a low-risk, or practically no-risk, way to earn interest on your cash? Accounts such as high-yield savings accounts (HYSAs) and certificates of deposit (CDs) can help you earn interest to keep up with inflation.

But, Investopedia warns that it's not always a hedge if the interest rate is too low. "If you would like to reduce the impacts of inflation on your CD investments, consider buying a CD that is higher than the inflation rate so that you can get the most value for your money," they state. "The longer the term of the CD, the higher the interest rate will be."

Also, pick a bank that's federally insured, so that your deposits are protected against loss up to $250,000, if the bank fails.

Real Estate

Real estate is also a good hedge, and you can get into the market by investing in real estate investment trusts (REITs), so you don't even have to run out and buy a house.

REITs, according to the experts at Investopedia, are "companies that own and operate income-producing real estate." When inflation goes up, property prices and rental income also tends to shoot up, and that can make real estate a good place to park some assets, which you can do through REITs.

There are other ways to protect your wealth during times of inflation, too, including Treasury Inflation-Protected Securities (TIPS), which are government bonds tied to the Consumer Price Index (CPI) and backed by the U.S. government, and Series I bonds, which are a U.S. savings bonds issued by the U.S. Department of the Treasury.

During times of uncertainly, there's no need to freak out. Before you do anything, talk to your financial advisor and have them give you personalized advice on how to reshape your portfolio to ensure that you're getting the most out of your money.

This story was originally published by Men's Journal on May 11, 2026, where it first appeared in the News section. Add Men's Journal as a Preferred Source by clicking here.

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This story was originally published May 11, 2026 at 6:34 PM.