Impact of inflation on stock market performance

Abstract

In the literature, it is known that there is a relationship between inflation rate and stock market performance. most studies proves that there is a negative relationship between the inflation and stock market performance, even with different methodologies the outcome proves the negative relationship, According to Upadhyay (2017) they used the consumer price index and the national stock exchange indicator and the result are sufficient to ensure that changes in stock prices over the period of selected time are not due to fluctuations in the CPI, but due to the changes in stock prices due to certain other factors available on the market. Stock market performance is measured with many indicators and one of them EGX30, and trade volume. This research aims to investigate whether if the inflation rate has a significant impact on stock market performance measured by EGX30, and trade volume. The data will be analyzed using statistical program called SPSS, the analysis will be done through descriptive analysis, correlation and multivariate regression analysis (MANOVA). The results were that there is a significant impact for the inflation rate on stock market performance.