Inflation may not be running at the levels we saw a few years ago, but I don’t think Canadian investors should ignore it. Canada’s headline CPI was 2.8% year over year in June, and the Bank of Canada expects inflation to gradually move back toward its 2% target. At the same time, energy prices, geopolitical tensions and global supply disruptions are still creating plenty of uncertainty. (statcan.gc.ca)
For me, that makes this less about trying to predict the next inflation report and more about owning businesses that can handle rising costs. I’m looking for companies with pricing power, essential products, hard assets, strong cash flow or direct exposure to commodities whose prices can rise during inflationary periods. None of these stocks is a perfect inflation hedge. There isn’t one. But these are five Canadian stocks I think are particularly well positioned if inflation remains stubborn over the next several years.
#5 Nutrien (NTR.TO)
Approximate share price: $93
Market capitalization: $44 billion
Industry: Fertilizers and agricultural inputs (Yahoo Finance)
Why It Made My List
Nutrien gives investors exposure to something the world simply can’t stop needing: food production. Fertilizer prices are heavily influenced by global supply, natural gas prices, crop economics and geopolitics. Those same forces can also contribute to inflation. Nutrien’s latest results show why I think the company belongs here. First-half 2026 potash sales volumes reached record levels, while higher global fertilizer benchmarks helped its potash and nitrogen businesses. Management also increased its 2026 potash sales-volume guidance. (Nutrien)
What I Like
What interests me most is Nutrien’s scale. This isn’t simply a bet on potash prices. Nutrien combines potash, nitrogen and phosphate production with a large agricultural retail business. That diversification gives it several ways to participate in global agricultural spending. Second-quarter net earnings came in at US$1.22 billion, while adjusted EBITDA reached US$2.43 billion. Cash provided by operating activities increased 12% during the first half of 2026, and the company has continued returning capital through dividends and share repurchases. (Nutrien)
One Thing I’d Watch
Commodity businesses can turn quickly. Higher fertilizer prices are great until farmers start cutting application rates or delaying purchases. Nutrien actually saw lower fertilizer volumes offset some of the benefit from higher pricing during the second quarter. (Nutrien)
Would I Buy Today?
I like Nutrien more as a long-term inflation and agriculture play than as something I’d chase after a big commodity rally. Around current levels, I’d probably build a position gradually rather than jump in all at once.
#4 Agnico Eagle Mines (AEM.TO)
Approximate share price: $253
Market capitalization: $128 billion
Industry: Gold mining (Yahoo Finance)
Why It Made My List
If we’re talking about inflation, I think at least one gold producer deserves consideration. Instead of owning gold directly, Agnico Eagle gives investors exposure to rising gold prices through an operating business. And right now, the numbers are impressive. Agnico realized an average gold price of US$4,483 per ounce during the second quarter of 2026 and generated record quarterly free cash flow. (Agnico Eagle Mines)
What I Like
Agnico isn’t just benefiting from gold prices. Its balance sheet has become extremely strong. The company finished June with approximately US$3.27 billion in net cash and only US$197 million of long-term debt. That gives management considerable flexibility to invest in new mines, expand existing operations, buy back shares and return cash to shareholders. (Agnico Eagle Mines) That’s exactly the type of balance sheet I want from a cyclical miner.
One Thing I’d Watch
Costs are rising too. Labour, royalties, diesel and sustaining capital all pushed Agnico’s production costs higher in 2026. (Agnico Eagle Mines) That’s important because gold miners don’t benefit from inflation automatically. If operating costs rise faster than gold prices, margins can still get squeezed.
Would I Buy Today?
I really like Agnico Eagle, but after such a strong move in gold, I wouldn’t feel pressured to chase it. Personally, I’d rather wait for weakness and add patiently.
#3 Waste Connections (WCN.TO)
Approximate share price: $233
Market capitalization: $59 billion
Industry: Waste management and environmental services (Yahoo Finance)
Why It Made My List
Waste might be the least exciting business on this list. That’s part of why I like it. Garbage collection doesn’t disappear because inflation rises or consumers become nervous about the economy. Municipalities, businesses and households still need waste removed. That gives Waste Connections recurring demand and, importantly, the ability to increase pricing over time.
What I Like
The latest results continue to show a remarkably consistent business. Second-quarter revenue reached US$2.56 billion, up from US$2.41 billion a year earlier, while adjusted EBITDA increased to US$840 million. Management also raised its full-year revenue and adjusted EBITDA outlook. (Waste Connections) Waste Connections also continues acquiring smaller operators. Management says acquisitions completed so far this year represent more than US$100 million of annualized revenue. (Waste Connections) For me, that’s the attraction: essential demand, pricing power, acquisitions and recurring cash generation all working together.
One Thing I’d Watch
Valuation. Great businesses can still become expensive stocks. Waste Connections often trades at a premium because investors recognize the quality and consistency of the business. I’d be careful about paying too much for that predictability.
Would I Buy Today?
I’d happily own Waste Connections for the long term. At today’s valuation, though, I’d probably prefer buying during a pullback rather than getting aggressive after a strong run.
#2 Canadian Natural Resources (CNQ.TO)
Approximate share price: $66
Market capitalization: $137 billion
Industry: Oil and natural gas production (Yahoo Finance)
Why It Made My List
Canadian Natural is probably the most obvious inflation-sensitive stock on my list. Energy prices affect virtually everything: transportation, manufacturing, food production and household expenses. When oil prices rise and contribute to inflation, a major oil producer like CNQ can benefit directly.
What I Like
The scale of this business continues to impress me. Canadian Natural produced a record 1.677 million barrels of oil equivalent per day during the second quarter, an 18% increase from the year before. Adjusted funds flow reached a record $6.9 billion, and management raised its 2026 production guidance for the second time this year. It also isn’t just spending everything it makes. CNQ returned approximately $2.4 billion directly to shareholders during the quarter through dividends and share repurchases while reducing net debt by another $1.6 billion. That combination of production growth and cash returns is what keeps me interested.
One Thing I’d Watch
Oil prices remain the biggest variable. CNQ can control costs and production, but it can’t control what a barrel of oil sells for. Its medium- and long-term oil sands expansion projects are also currently waiting on more clarity around government agreements and regulation.
Would I Buy Today?
I’d be comfortable owning CNQ long term. I wouldn’t try to predict where oil goes next month. I’d rather accumulate shares when energy sentiment weakens and let the business do the work.
#1 Loblaw Companies (L.TO)
Approximate share price: $62
Market capitalization: $71 billion
Industry: Grocery, pharmacy and consumer staples (StockAnalysis)
Why It Made My List
Loblaw might seem like an unusual choice for the top inflation stock. I actually think that’s what makes it interesting. Canadians can postpone buying a new car or taking a vacation. They can’t stop buying groceries, medication and household essentials. During periods when consumers feel squeezed, value becomes even more important. Loblaw’s discount banners continued outperforming in the second quarter as shoppers looked for value, while food retail sales increased 3.3% and drug retail sales increased 6.1%. (Loblaw)
What I Like
Loblaw has something every business wants during inflation: pricing power combined with essential demand. It also isn’t just a grocery story anymore. Shoppers Drug Mart provides meaningful exposure to pharmacy and healthcare, while its discount grocery banners give Loblaw a strong position when consumers trade down. Second-quarter retail revenue rose 4.1% to roughly $15 billion, while adjusted earnings per share increased 11.9%. (Loblaw) That’s what catches my attention. If a company can grow earnings considerably faster than inflation while selling products people need regardless of the economy, I want to pay attention.
One Thing I’d Watch
Valuation and margins. Grocery is politically sensitive, highly competitive and constantly under scrutiny. Loblaw still needs to prove it can grow earnings without stretching pricing too far or losing customers to competitors.
Would I Buy Today?
Of the five companies here, Loblaw is probably the one I’d be most comfortable owning through almost any economic environment. I wouldn’t buy it at any price, but it’s exactly the type of business I’d want on my watchlist when I’m thinking about protecting purchasing power over the next decade.
Final Thoughts
The common thread between these five stocks isn’t that they’re guaranteed to rise whenever inflation rises. They’re completely different businesses. Nutrien gives me agriculture. Agnico gives me gold. Waste Connections gives me essential services and pricing power. Canadian Natural gives me energy exposure. Loblaw gives me everyday necessities. That’s the diversification I want.
Inflation could continue falling toward the Bank of Canada’s target, or another energy or supply shock could send it higher again. Nobody knows with certainty. What I care about more is whether the businesses I own can continue raising revenue, generating cash and building value faster than my purchasing power is being eroded. Because ultimately, beating inflation isn’t about finding the perfect inflation trade. It’s about owning businesses that can become more valuable while everything around them becomes more expensive.
