Hedge Against Inflation(redirected from Hedging Against Inflation)
Hedge Against Inflation
To take steps to limit the reduction of the value of an investment due to inflation. Inflation decreases the value of money such that an investment's return is not worth as much as it might have been when the investment was made originally. Hedging against inflation helps reduce this pressure. Examples of hedging against inflation include buying commodities such as gold or purchasing an inflation-protected security, in which the return is linked to the inflation rate. See also: Real Rate of Return.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved