5 Inflation-Resistant Industries To Invest In Now
Written by
Gabriel Vito
Edited by
Rebekah Evans
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As of last month, inflation sits at 2.8%, according to the latest U.S. Bureau of Labor Statistics report — still above the Federal Reserve’s 2% target.
Inflation is a sneaky pickpocket that drains your money’s value. One day, your grocery bill looks normal. The next, it’s a second rent payment. Meanwhile, that “solid” 5% return on your investments shrinks to 2% once inflation takes its cut.
But not every investment crumbles under inflation. Some remain strong while prices rise. Here are five smart investments that can hold their ground and even make you money while the rest of the market struggles.
Treasury Inflation-Protected Securities (TIPS)
TIPS are government bonds designed to hedge against inflation. Unlike regular bonds, their principal adjusts based on the Consumer Price Index (CPI) to help preserve purchasing power. They also pay interest twice a year, which offers a steady income.
So far in 2025, TIPS funds have delivered solid returns, with the Vanguard Inflation-Protected Securities Fund (VIPIX) up 3.4% year-to-date. Rising inflation expectations — partly due to tariff concerns and economic slowdown fears — have boosted demand for inflation-protected assets.
Since TIPS are tied to the official Consumer Price Index (CPI), they protect against general inflation. But if key personal expenses like rent, healthcare, or tuition are rising faster than CPI, TIPS may not fully shield you from higher costs.
Real Estate Investment Trusts (REITs)
Real estate is a classic inflation hedge since property values and rents tend to rise with inflation. REITs let you invest in real estate without owning physical property, offering exposure to commercial buildings, apartments and shopping centers.
Because landlords can raise rents in response to inflation, many REITs maintain strong returns. From 2021 to 2024, national rental prices increased by an average of 7%, outpacing core inflation, according to Zillow’s Rental Market Report.
They also pay out most of their profits as dividends, which provides investors with a steady income.
Dividend Stocks
Dividend-paying companies (especially in consumer staples, utilities and healthcare) can provide stability for investors.
For example, recent data highlights the strength of utilities as a reliable dividend sector. Companies like Duke Energy have remained stable despite market fluctuations, reporting earnings of $5.90 per share last year, with projections to grow to $6.32 this year and $6.72 by 2026. Duke Energy also offers a 3.5% dividend yield, which is higher than the S&P 500 average.
While dividend-paying stocks help generate steady income, they shouldn’t be the only hedge against inflation. Instead, they work best alongside other inflation-resistant assets as part of a diversified portfolio.
Commodities (Gold, Oil and Raw Materials)
When inflation rises, commodity prices often follow suit. Hard assets like gold, oil, wheat and industrial metals tend to hold value because their production costs and demand increase with inflation.
Gold, in particular, is viewed as an inflation-proof asset because it maintains purchasing power when paper currency weakens. Recently, gold prices have surged to record highs amid heightened safe-haven demand due to Middle East tensions and trade uncertainties, reaching $3,041.37 an ounce, according to Reuters.
Additionally, energy and commodity stocks often perform well when raw materials become more expensive. For instance, the Harbor Commodity All-Weather Strategy ETF (HGER), which offers exposure to commodities like crude oil, has shown a smoother performance compared to the S&P 500 since its inception in 2022, as reported by MarketWatch.
However, commodities are volatile, and their prices can swing due to supply and demand shifts. They work best as a small part of a diversified portfolio rather than a primary investment.
Rental Properties
Owning rental properties offers a tangible way to beat inflation. Unlike stocks or bonds, real estate tends to increase in value over time and landlords can raise rents to keep up with rising costs.
Additionally, a fixed-rate mortgage locks in borrowing costs, meaning inflation increases rental income while your mortgage payment stays the same. However, real estate isn’t passive considering maintenance, vacancies and property management can cut into profits.
Inflation can erode wealth, but smart investing can help protect your money. TIPS, REITs, dividend stocks, commodities and rental properties have historically been strong inflation hedges. While no single asset is perfect, a diversified portfolio combining multiple strategies can help investors maintain purchasing power.
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