Mechanism of stocks is considered as a medium of financial supply for manufacturing companies. Inflation is also one of the economical and social complications which have gripped the economy in the present century. Fluctuations in inflation rate and its instability during time have created some problems in economical decisions and predictions of companies and can damage the economy of companies. Since the objective of every investment in private section is acquiring efficiency (output), inflation might have a significant effect on private investment. With regard to the fact that inflation decreases the purchase power, investors and managers of companies have a particular attention to the inflation rate and inflation expectations. Therefore, in case the relationship between inflation and output of stock is specified, it can act as a solution to the investors for future planning of companies. The present study aims to investigate the relationship between inflation rate and efficiency of Tehran stocks in order to make the data for decision making about investment as clear as possible.

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