By ICE – Islamic Finance Advisory and Consultancy: Shaykh Dr Sajid Umar, Umer Suleman and Zain Mahmood
This time last year four pints of Tesco Whole Milk cost £1.09; today the price has risen to £1.15, representing a 5.5% price increase for one of our daily essentials. Tesco Fusilli Pasta likewise cost £1 and is now £1.30 – a 30% increase year-on-year. Heinz Baked Beans and Kingsmill 50/50 bread cost 80p but now sell at £1 each – a price increase of 17.65% for both products. This is just the tip of the iceberg, and these sentiments are mirrored in other daily staples as the UK grapples with the highest inflation rates in the last 30 years.
The Bank of England has been tasked by the government to maintain an inflation rate of 2%, allowing businesses to plan their pricing and consumers to plan their spending. The inflation rate has not met this target since May 2021 for a variety of reasons, causing a knock-on effect on all segments of society that affects the most vulnerable of families the hardest. What are the reasons behind this increase in inflation? What are its latest causes? And what can we do about it? Let’s explore each question and their related topics, as well as possible solutions from an Islamic perspective below.
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