Recently, I’ve been thinking about a question: what stocks should you buy to truly protect your purchasing power from inflation? Entering 2026, although the inflation rate is somewhat better than in the previous two years, data from the IMF and major banks all point to the same conclusion: inflation’s stickiness is still strong. In particular, price pressures caused by higher service-sector costs and energy volatility remain above the central bank’s targets. To be honest, simply saving money is not enough to defend purchasing power.

Let me give an example. Suppose you had 1 million stored in a bank at the beginning of 2024. At that time, a bowl of beef noodle soup costs 200 yuan, so you could eat 5,000 bowls. Two years later, with average inflation of 3% but the bank paying only 1.5% interest, your deposits grow to just over 1.03 million. It sounds like you profited, but that bowl of noodles now costs 212 yuan, and you can only buy 4,859 bowls—effectively losing 141 bowls to inflation. That’s why the question of what stocks to buy to beat inflation has become a problem every investor must face. The key is to find assets that can outperform inflation—especially high-quality stocks with strong pricing power that can pass costs on to consumers.

By 2026, under the triple squeeze of supply-chain reshuffling, labor shortages, and “green inflation,” prices still won’t stop rising. At that point, what you need are companies with strong pricing power—businesses that can benefit from the wave of price increases. I’ve identified several groups worth paying attention to.

The first category is essential consumer goods and retail leaders. No matter how severe inflation gets, people still need to buy food, medicine, and daily necessities. Large retailers like Walmart can actually gain market share during inflation, because consumers look for cheaper options. Costco’s membership model provides steady cash flow. Procter & Gamble owns a host of household-essentials brands and has ample room to raise prices. In Taiwan, Uni-President is even a channel powerhouse with extremely strong pricing power. In an inflationary environment, these companies tend to be safe havens.

The second category is financial stocks. Even if interest rates may fine-tune at the margin, the 2026 interest-rate environment is still expected to remain at high levels. Banks can expand net interest margins through higher rates, and growth in nominal asset size can also drive fee income. JPMorgan, Santander Bank, and Yuanta Financial are all worth watching. Berkshire Hathaway, with its massive insurance float, is also relatively defensive in an inflationary environment.

The third category is hard assets and commodities. Inflation, at its core, is currency depreciation—so physical resources have intrinsic value preservation. In 2026, with a peak period for low Earth orbit satellite construction and a surge in electricity demand for AI data centers, demand for green-energy metals such as copper and lithium is expected to be strong. ExxonMobil, Freeport Copper Mine, and Albemarle Lithium Mine are able to pass costs through directly and can also pay generous dividends—important answers to what stocks to buy during inflation.

The fourth category is licensing-driven industries with strong moats. TSMC almost monopolizes advanced process technology. AI companies rely heavily on its capacity, giving it unbeatable bargaining power. Microsoft’s B2B software has high customer “stickiness,” and when prices rise, customers face extremely high switching costs. Luxury brands like LVMH have customers who are less sensitive to price—raising prices in turn strengthens the sense of scarcity behind the brand. ASML’s EUV machines are a technological must-have and fully control pricing. Meta, as a leader in digital advertising, is more willing to invest in targeted ads during inflation, when competition and efficiency matter even more.

In this volatile era of 2026, the question of what stocks to buy for inflation isn’t just about holding without changing. Geopolitical risk could temporarily push up gold prices or oil prices, and market sentiment can switch quickly. It’s recommended to build positions in stages to manage shocks around data releases, while also keeping an eye on dividend payments. Prioritize companies with stable dividend records and dividend growth rates higher than the inflation rate. Only then can you both hedge against inflation, preserve your assets, and create opportunities for wealth growth amid rising prices.