Inflation-Protected Investing UK: How to Beat Stealth Erosion

Cash savings lose purchasing power even at "good" interest rates - 4% interest on 3% inflation is only 1% real return

Index-linked gilts (linkers) are the most direct UK inflation hedge but have significant duration risk and complex tax treatment

A globally diversified equity portfolio has historically beaten inflation by ~5-7% per year over rolling 20-year periods

Property and commodities offer partial inflation protection but with high volatility and concentration risk - rarely the right primary hedge