Inflation

What does Islam say regarding student loans that have interest linked to inflation? Student loans work as following: A student borrows £16,000 this year when the inflation rate is 2.5%. He does not have to pay it back until he is employed (after graduation). However, the money has to be paid back at the new inflation rate at the time of repayment. If the inflation rate increases, then the nominal value to be paid back will increase, thus the student may have to pay back around £24,000 instead of the original £16,000. Is this disparity of figures between the original sum and the new sum, regarded as riba or an element of riba? notes: the rate of interest charged on the loan balance will be equivalent to the rate of inflation. This will mean that what you repay will be no more, in real terms, than the amount you borrowed. The rate of inflation is measured according to the Retail Prices Index (RPI), which varies from time to time. Is it at all permissible to take a Riba-based loan for study? Thanks, and sorry for this long question.

I understand that RIBA(appreciation or augmentation to the principle) is Haram in Islam. This means if we earn interest on the money in bank it is Haram.My question is:How do we explain the depreciation in the value of money due to inflation? what is the islamic way to counter this depreciation in monetary value?

Dear scholars, As-Salamu `alaykum. How does Islam deal with the issue of inflation, i.e. currency losing its value with the passage of time? Jazakum Allah khayran.