P/E vs. inflation

How inflation affect P/E? High inflation tends to depress P/E ratio?

Yeah. Think about it from a purchasing power perspective.

your company earnings don’t go as far but stock price stays the same. Basically errosion of value assuming no change other than inflation

Not sure i get it. You mean P the same but earning decline?

People tend to discount the price of the stock to account for an ‘inflated’ earnings #.

What you are saying will raise the P/E…isn’t it? Price stays same and earning go down. Don’t think that’s true though.

Got it. So investor give company less value § for an “inflated” earnings (E). P/E tends to be low. Thank you!