Alemu LambamoTigist Kassie2026-03-092026-03-092025-06-03https://etd.aau.edu.et/handle/123456789/7924The study investigating the impact of inflation on stock price in selected eight African countries, Egypt, Morocco, Tanzania, Kenya, Ghana, South Africa, and Botswana span from 2008 to 2023. The study employed secondary data. The study used panel Auto-regressive Distributed Lag (ARDL) model estimated via pooled mean group (PMG) approach. The study examined the short-run and long-run effect of inflation on stock price as well as other macroeconomic variable as a control variable. Results from the study indicate that inflation has a positive and significance long-run impact on stock price. This also suggests that equity in these markets can serve as a hedge against inflation which supports the fisher effect hypothesis. In contrast shortrun effect of inflation varies significantly across the country. Among those, South Africa, Egypt, Nigeria and Ghana, has positive and significant effect on stock price. This indicates the presence of country specific effect. Broad money supply shows a significant and positive impact on stock price in long-run, in contrast gross domestic product growth rate exhibits a significant and negative impact on stock price. However, there is no significant relationship between deposit interest rate and stock price. The findings also recommend to policy maker emphasizes the need of macroeconomic stability, country specific investment strategy, and for investor may use the information invest in safe investment environment. Key words: Inflation, Stock price, Panel ARDL, PMG estimation, Inflation hedge, Africa stock marketThesis