\A May 2011 lengthy article by Gahagan and Martin,  suggests a modest, permanent allocation to inflation-hedging -assets , such as TIPS, commodity futures, and REITs.

The interesting part of the article is a discussion of how different inflation-hedging assets perform across the inflation cycle.  For example, TIPS perform best in an inflationary period of less than 5% inflation while Commodity Futures perform best when inflation is more than 5%.

The bottom line of the analysis is that a mix of inflation-hedging assets provides a better risk-adjusted outcome across an inflation cycle.