Abstract:
The objective of this report is to study the impact of inflation on Stock Market development. Eight years monthly data for inflation (CPI) and KSE-100 is selected from January 2005, to December 2013. The statistical technique used to determine the relationship between inflation and KSE-100 index is Ordinary Least Squares Regression (OLS). I hope this study will be beneficial for the people, who want to know about the relationship between the two variables. Furthermore, study will give an imminent and ample knowledge about inflation and Stock Market development along with the direction for the future research in the same area.
