Agriculture is often considered a good hedge against inflation, primarily because it involves tangible assets whose value can rise with increasing prices. The essential nature of agricultural products further ensures steady demand, which tends to remain resilient or even grow during inflationary periods, potentially leading to higher commodity prices. Additionally, supply constraints in agriculture, such as limited land and water resources, can further elevate prices when demand outstrips supply, especially during inflation. Research shows that agricultural products historically have had the highest correlation with inflation compared with energy and industrial commodities, with grain commodities like barley, oats, and wheat exhibiting especially high inflation hedging capacity over the centuries. However, since the second half of the 20th century, the correlation between agricultural commodities and inflation fell from the 0.6 range to just around 0.2, while energy commodities became a more effective hedge. The declining hedging capacity of agricultural commodities over time was attributed to the rising importance of industrial and energy commodities and greater diversity in consumption baskets determining inflation.