Inflation protected investments and bonds

Inflation protected investments and bonds are securities designed to help protect investors from inflation. Primarily issued by sovereign governments, such as the U.S. and the UK, ILBs are indexed to inflation so that the principal and interest payments rise and fall with the rate of inflation. Inflation protected investments and bonds offer stability and protection against inflation for investors. However, there are some drawbacks to investing in these securities, such as less earning potential than other options and uncertainty around the accuracy of the inflation rate measure used.