How to hedge against inflation with investments that keep pace with rising prices

If your money isn’t moving forward, it’s falling back.

That’s due to inflation, which is almost always with us. Inflation is the term used to describe the steady rise of prices for goods and services that affects all areas of the economy.

Over time, inflation can erode the purchasing power of your dollar, and also chip away at your investment returns. But with some foresight and planning, it’s possible to protect your money.

The solution is investing for inflation — choosing investments that will give you a return greater than the current rate of inflation — or at least keep up with it. Here’s how investors can protect themselves from rising prices, and which investments make the best inflation hedge.

Published by Ramsay Lewis in Business Insider.