Inflation can have mixed effects on share values. Generally, during periods of moderate inflation, share values can increase as companies may be able to raise prices and revenue, leading to higher profits.
However, if inflation rises too rapidly, it can erode consumer purchasing power, affect company costs, and potentially lead to higher interest rates, which can negatively impact share values.
The Buhari Nigeria was marked by moderate inflation with a little increase in share values....but as the administration of President Bola Tinubu, dismantled petroleum fuel subsidy in the name of neoliberalism and protection of investments (of the elite classs), inflation ran away, prices of Goods now on rapid climb, and consumer purchasing powers decline, putting share values at slower growth.
So, while moderate inflation can sometimes correlate with rising share values, the relationship is not always straightforward and depends on various economic factors.
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