Inflation Rate And Stock Market Prices

ABSTRACT In this study, we set out to investigate in an empirical pattern, the effect of inflation on stock prices in Nigeria. The efficiency of a stock market, among other things, depends on its ability to process external information and not allow it to distort market prices. In order to obtain the dynamic properties of the analysis, time series estimation techniques were applied in the study. Essentially, the Granger Causality testing and the Cointegration and Error Correction Methods were employed in the analysis. Annual time series data was used in the estimation.    The re…