Jasmine Birtles
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How to Build an Inflation-Resistant Portfolio To Protect Your Wealth!
Ruby Layram
24th Sep 2025
Inflation is back in the headlines, again. The OECD has just warned that the UK will have the highest inflation of the G7 this year, and while 3.5% might not sound scary, it still means your money is losing buying power faster than in other wealthy nations. That weekly shop, the energy bill, even the odd takeaway, it all adds up.
But here’s the thing: as an investor, you don’t have to just sit back and watch inflation eat into your returns. You can build what I call an inflation-resilient portfolio. One that’s designed to withstand rising prices and even use them to your advantage.
About the author
Ruby Layram is our resident Investment Editor. She is a Gen-Z who is passionate about teaching others how to make their money work for them through simple yet powerful investing strategies. Ruby first discovered the world of investing whilst studying at the University of Winchester and became a contributor to MoneyMagpie shortly after.
Before joining the MoneyMagpie team, Ruby contributed to The Motely Fool UK, Techopedia, BanklessTimes, TradingPlatforms.com, and Buyshares.co.uk.
Why Traditional Diversification Isn’t Enough
Before I dive into how to create a portfolio that is resilient to inflation, it’s worth explaining why you should start doing things a little differently.
We’re all told to diversify, spread money across different sectors, regions, and asset classes. That’s sound advice. But here’s the problem: most portfolios are built around growth or income without much thought about inflation protection.
When inflation spikes, some assets (like bonds with fixed returns or certain growth stocks) can suffer badly. Meanwhile, other parts of the market thrive. The trick is making sure you’ve got enough exposure to the right areas.
What Corners of The Market Are Inflation Resilient?
Here are some sectors and asset types that have historically held up well when prices rise:
Energy & Utilities
Energy companies often benefit when prices climb because they can pass on higher costs directly to consumers. Utilities, though more regulated, still tend to have built-in mechanisms to adjust pricing.
Infrastructure
Think toll roads, airports, pipelines. These businesses often have inflation-linked contracts, meaning they can raise prices in line with inflation. Investors can access them directly or via infrastructure funds.
Commodities
From oil to wheat to copper, commodities usually rise in value when inflation does. Adding a small slice of commodities or commodity-focused ETFs can act as a natural hedge.
Companies with Pricing Power
This is the most overlooked but arguably the most important. Some companies have strong brands, unique products, or essential services that allow them to raise prices without losing customers.
Think Apple, Unilever, or Nestlé, they can nudge prices higher and consumers still buy.
Actionable Tip: Audit Your Portfolio for Pricing Power
Here’s a quick exercise you can do today:
- Look at the biggest holdings in your portfolio.
- Ask yourself: If inflation rises another 2-3%, can this company raise prices and keep its customers?
- If the answer is no (for example, many budget retailers or low-margin manufacturers), you may want to balance things out by adding some that can.
This doesn’t mean ditching everything else. Just making sure you’ve got enough “inflation-resilient” assets in the mix.
Final thoughts
Inflation isn’t going anywhere fast. Even if the headline rate falls, we’re still looking at stubbornly higher prices in essentials like food and energy.
By thinking beyond standard diversification and deliberately adding inflation-resilient assets, you can protect your portfolio and your peace of mind.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here, including opinions, commentary, suggestions or strategies, are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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