Yes, an ISA can beat inflation, but it also depends on the type of ISA and assets held within the ISA. Cash ISAs might not be able to beat inflation as their interest rate may be below the inflation rate, but stocks and shares ISAs fair better during times of high inflation. ISA investments with assets class such as inflation-indexed bonds, which has variable interest rate tied to the inflation rate, and ​​exchange-traded fund (ETFs) that own gold can help hedge against inflation risk.