With UK inflation expectations hitting their highest level since the start of the financial crisis, Fidelity Worldwide Investments suggests it’s time for investors to inflation-proof their investments.

The firm suggests five strategies to combat the destructive impact of inflation: invest in equities - in a modestly inflationary environment, equities are a good hedge against rising prices; gain exposure to real assets such as airports, oil wells, property and other infrastructure; hold gold; exploit the compounding benefits of equity income by reinvesting dividends; and always buy the best, scarcest assets you can, especially things that they can't make any more.

Some recommendations come with a caveat. For example, Fidelity warns that, as gold offers no income, it is less of an investment than a speculation or insurance policy. Similarly, while some scarce resources, such as wine and classic cars, can do well in inflationary environments they are also prone to “horrendous” busts as well as booms and should be treated with great care.

“It makes sense for investors to have at least part of their portfolio invested in inflation-resistant assets - real assets that cannot be easily replicated as money can be. While it would be impractical for most of us to buy an airport or a gold mine, it is possible to invest in stocks backed by real assets whose value is less likely to be eroded by inflation,” Amit Lodha, portfolio manager at Fidelity, said in a statement.