Does inflation have any effect on the price of shares?

[Good-Person]

We already know that inflation has a very bad effect on the economy. When the storm of inflation hits the economy, the prices of almost all kinds of commodities increase a lot. So, when inflation increases, do the prices of shares also increase as well regardless of how a company may be performing in the stock market?

 

[Kane]

When there is inflation, the price of raw materials increases and when the price of raw materials increases, businesses are forced to increase prices for their products., CVVistomers, on the other hand, lose spending capabilities due to inflation as the money undervalued., therefore, there are fewer trading activities and the proice of stocks go down.