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As consumer prices climb amid the Iran war, some investors are looking for ways to combat inflation .

One option, Series I bonds — a government-backed, nearly risk-free asset — could now be more attractive, some experts say. But others may prefer more flexible options.

Newly purchased I bonds will pay 4.26% annual interest through Oct. 31, up from the 4.03% yield offered through April 30, the U.S. Department of the Treasury announced last week.

When inflation rises, "I bonds definitely have more appeal," said Ken Tumin, founder of DepositQuest.com, a blog that tracks I bond rates, among other deposit accounts.

Demand has previously surged for I bonds amid soaring inflation. With yields tied to the consumer price index, I bond rates hit a record high of 9.62% in May 2022, and investors poured into the assets.

Many have redeemed I bonds as prices cooled.…