Lately I've been pondering a question: why do so many people still cling to bank deposits during inflationary times? I ran some numbers and it really surprised me.

Suppose you deposit 1 million at the start of 2024, with a bank interest rate of 1.5%, but inflation is 3%. Over two years, your savings indeed grow to about 1.03 million. But during the same period, prices also rise—beef noodles that cost 200 yuan now cost 212 yuan. Your purchasing power has actually shrunk. Seeing the account balance increase, but in reality being silently eroded by inflation, is why saving money alone is simply not enough.

By 2026, according to IMF research, although inflation has improved compared to the previous two years, it remains sticky—especially with service sector costs and energy volatility still pushing prices higher. In such an environment, finding assets that truly hedge against inflation becomes crucial.

I've observed a phenomenon: the most inflation-resistant companies share a common trait—strong pricing power. When costs rise, they can directly pass the pressure onto consumers, preventing profit erosion. These types of inflation-proof concept stocks are worth paying close attention to.

**Essential consumer retail is the first line of defense.** No matter how bad the economy gets, people still need to eat and buy daily necessities. Retail giants like Walmart and Costco, during periods of inflation squeezing consumer purchasing power, can even gain more market share. Companies like Procter & Gamble, which own numerous household essential brands, have high brand loyalty and significant pricing flexibility. Taiwan’s Uni-President follows this logic as well—controlling distribution channels and pricing power is a standard inflation concept stock setup in the Taiwan stock market.

**Financial stocks look promising in a high-interest-rate environment.** In 2026, interest rates are expected to remain relatively high, which will widen banks’ net interest margins, directly boosting profits. Major commercial banks like JPMorgan Chase and Bank of America are highly sensitive to interest rate changes; the Fed maintaining high rates means increased interest income for them. Berkshire Hathaway, with its massive insurance float, and its energy and commodity investments also have defensive qualities in an inflationary environment.

**Hard assets have intrinsic value that resists decline and preserves wealth.** The essence of inflation is currency devaluation; tangible resources are worth more in comparison. In 2026, low-earth orbit satellite construction will peak, AI data centers will see a surge in electricity demand, and demand for metals like copper and lithium—key for green energy—will be rigid. Energy and raw material companies like ExxonMobil and Freeport are not only able to pass on costs but also pay stable high dividends, making them good refuges in current conditions. Taiwan’s Formosa Plastics also plays a similar role locally.

**Finally, industries with moats and patents.** TSMC nearly monopolizes advanced process technology; AI chip manufacturers depend heavily on its capacity, giving TSMC unbeatable bargaining power. Microsoft’s B2B software and cloud services have extremely high customer stickiness—migration costs are huge, so they can raise prices at will. Luxury brands like Louis Vuitton have customers who don’t care about price; raising prices can even enhance their exclusivity. These are classic inflation concept stocks—cost pressures hardly matter to them.

Honestly, inflation itself isn’t terrifying; what’s scary is your asset allocation lagging behind price increases. The key is to prevent cash from being eroded by inflation by investing in assets with real growth potential and strong pass-through ability. Gradually deploying, focusing on stocks with dividends higher than inflation, allows you not only to protect your assets during this price rise but also to create wealth growth opportunities.