Addressing the Phenomenon of Rising Prices in the Light of the Prophetic Guidance

Abstract

Research Summary Inflation is defined as a rise in the prices of goods and services beyond the accepted norm or customary value. This phenomenon is neither new nor a contemporary issue; rather, it has existed since ancient times. For during the time of the Prophet, people complained to him – peace be upon him – about high prices. Nor is the phenomenon of high prices confined to any particular country or nation. This phenomenon has its causes, some of which are spiritual and lie in disobedience to Allah – the Almighty – for this is the root of all evil and affliction, It also has material causes, such as monopoly, extravagance and wastefulness, and it has negative consequences for both the individual and society, such as theft, indifference towards the means of earning money, and a reluctance to marry. There are effective remedies for this phenomenon and its negative consequences found in the Prophetic Sunnah, the most important of which are: Seeking forgiveness and repenting to Allah – Glorified and Exalted be He – and price regulation, which has its own rules and guidelines. Among these effective remedies is abstaining from what is non-essential by doing without it, or replacing expensive goods with others until their prices fall, as well as establishing lawful markets to counter usurious markets, thereby reducing their activity. This study began with an introduction outlining the concept of high prices and its history, followed by a chapter setting out the research plan. It then comprised two sections: the first addressed the causes of this phenomenon and its negative effects, whilst the second dealt with remedies for these causes and effects drawn from the Sunnah of the Prophet, concluding with a summary of the main findings, recommendations and indices.