Zakat and inflation: A fiqh and economic perspective

Abstract

This paper examines the relationship between zakat, one of the fundamental pillars of Islam, and inflation, a key economic challenge in contemporary societies. From a fiqh perspective, the four Sunni schools of jurisprudence—Maliki, Shafi‘i, Hanafi, and Hanbali—developed comprehensive frameworks for zakat, emphasizing justice, redistribution of wealth, and protection of public welfare. From an economic standpoint, zakat functions as an instrument that redistributes income, discourages hoarding, and promotes productive investment, thereby contributing to economic stability and mitigating inflationary pressures. Through a multidisciplinary approach combining Islamic jurisprudence and economic theory, this study argues that zakat, when institutionalized and applied in accordance with Sharia objectives, provides a sustainable framework for addressing inflation while preserving social justice.