More than two years into the pandemic, companies are contending with supply chain disruptions, which are affecting manufacturing and production timelines and costs.

The Russia-Ukraine war has been a contributing factor, driving food and gas prices higher, and will continue to put pressure on the cost of goods and services as long as consumer demand persists.

The headline inflation reading for March peaked at an annual rate of 8.5%, the largest 12-month increase in more than four decades. High inflation is also expected be a headwind for economic growth.

With inflation expected to stay elevated throughout the year, the Federal Reserve is taking a more aggressive stance to tighten monetary policy by moving to increase interest rates and tame the sustained rise in prices.

Inflation-protected Treasuries TIPS account for inflation. Bonds whose principal fluctuates with consumer prices. They pay twice-yearly fixed interest on the adjusted principal. Interest payments grow with inflation and drop with deflation because they're applied to the adjusted principal.

Commodities Commodities are another inflation hedge. Oil, gas, precious metals, wheat, and corn are raw materials. They can be bought and sold on the futures market. Buy commodity ETFs or stocks.

Real Estate Real estate investment protects your money from inflation. This asset type has inherent value, pays dividends, and protects against inflation.

Conclusion Despite inflation fears, you can protect your savings. Having these asset classes can protect your long-term purchasing power. Your investment strategy can be adjusted based on inflation.