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Just yesterday (Tuesday, May 12), the US reported its biggest jump in annual inflation in 3 years!
Back in April, the International Monetary Fund (IMF) already hiked its global inflation forecast to 4.4% for 2026, up from their previous forecast of 3.8% back in January.
While these single-digit figures might not seem like much on paper, make no mistake - we're already feeling it in our wallets.
Inflation is when the prices of goods and services rise over time.
As a consumer, that means your money buys less than it used to - like when a cup of coffee that cost $3 last year now costs $3.25.
For investors, inflation matters because it erodes the purchasing power of your returns, so you want investments that can grow faster than inflation to actually increase your wealth.
Yes.
Many motorists, likely even yourselves, are already reeling from the surge in prices at the pump.
In the US, the average prices for steaks and field-grown tomatoes even hit fresh record highs respectively!
For those employed in the States, the 3.8% consumer price index (CPI) figure released yesterday also meant that ...
US inflation has overtaken workers' earnings growth for the first time since May 2023!
For global context, the rise in headline inflation in March-April 2026 (encompassing the first months of the Iran war) have been notable across major economies:
The inflation surge is starker across other emerging economies, with some well into double-digits:
The IMF has warned that, even if the conflict ends tomorrow and tanker traffic through the Strait of Hormuz is restored, it would still "take some time" before prices can return to pre-war levels.
In his final post-FOMC press conference as Fed Chair, Jerome Powell even cautioned on April 29th that the inflation stemming from oil's recent surge still lies ahead of us.
That length of time between now and inflation's peak depends on:
According to Bloomberg prices, Brent crude - the global oil benchmark - has already averaged over $100 per bbl, since the Middle East conflict erupted on February 28th.
On April 30th, Brent even briefly breached $120/bbl , reaching its highest price since March 2022 when the Russia-Ukraine war began.
At the time of writing, US-Iran peace talks have come to an impasse, and the Strait of Hormuz remains blocked.
Until the Strait of Hormuz is fully reopened, this energy shock is likely to keep cascading through Latin America, Asia, and Eastern Europe, driving up costs for food, transportation, and everyday essentials = an inflation storm.
In simpler yet realistic terms ...
The corrosive effects of inflation means that your money is losing value fast.
Here are 3 assets that savvy investors, especially in emerging markets, can use to hedge against the scourge of inflation:
Moving into US Dollar-denominated assets can help offset inflation and preserve capital.
Since February 28th, the US dollar has strengthened 1 - 6% against the likes of the:
And that's just on the value of foreign exchange alone, excluding potential gains from the underlying asset.
US stock indices have hit new all-time highs, while major cryptos have rebounded by double-digits so far in Q2 2026.
Hard commodities are physical natural resources that are mined or extracted from the earth, like oil and natural gas - raw materials that power industries and can't be grown on a farm.
Investing in such commodities, though volatile and highly sensitive to current geopolitical developments, may benefit should prices rise even higher, potentially offsetting the effects of an inflation surge.
So far in 2026:
Even commodity-linked stocks have risen alongside rising oil prices:
Since the Middle East conflict erupted, 10-year US Treasury yields have risen 13% to 4.45% currently.
In late-March, 10-year Treasury yields even briefly broke above 4.48% - its highest levels since July 2025.
NOTE: We cited US Treasuries (government bonds) as they are widely and historically seen as the "safest" a.k.a. "risk-free" assets for investors.
Some economies in Latin America even offer double-digit yields (e.g. Colombia and Brazil), while global financial platforms even pay out yields in the triple digits!
Earnings income (yields) by holding on to an asset is another way to offset the effects of inflation.
With major central banks scrambling to contain inflation, and price pressures set to persist for many months after the conflict ends, every day of delay costs you money.
The investors positioning their portfolios and safeguarding their wealth today will be the ones who survive - potentially even thrive - through this global inflation scourge.
Don't be caught on the wrong side of history.
DISCLAIMER:This article is provided for general information and reflects the author’s views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.