Global Commodity Price Dynamics in an Islamic Economic Perspective: Implications for Consumer Welfare

Abstract

This study aims to analyze the dynamics of global commodity prices from an Islamic economic perspective and their implications for consumer welfare. Employing an explanatory sequential mixed-methods design, the study involved 300 Indonesian consumers in the quantitative phase, followed by in-depth qualitative interviews. Quantitative results indicate that both global commodity price perception and Islamic economic perspective simultaneously and significantly influence consumer welfare (R² = 0.469; F = 114.77; p < 0.001). Partially, global commodity price perception had a positive and significant impact (β = 0.338; p < 0.001), while the Islamic economic perspective showed a stronger positive and significant influence (β = 0.377; p < 0.001) on consumer welfare. Qualitative findings confirmed that commodity price fluctuations, such as the global food price surge in 2022, compelled consumers to adopt adaptive strategies. The adoption of Islamic economic principles, such as qana'ah (contentment) and israf (avoiding extravagance), as well as takaful (mutual support) and zakat (charity) mechanisms, proved to be mitigating, helping consumers maintain their welfare. This study extends the understanding of economic welfare theory by positioning adherence to Islamic economic principles as an essential mitigation mechanism in the context of global commodity price volatility. The implication is the importance of strengthening sharia financial literacy and community support to enhance consumer resilience