New Delhi, Jul 14: The Congress on Tuesday launched a fresh attack on the BJP-led government over the latest inflation figures, alleging that continuous price rises over the past 12 years have placed increasing pressure on ordinary households. The opposition party questioned when Prime Minister Narendra Modi would address the economic difficulties faced by citizens.
The criticism came after government data showed that India’s retail inflation increased to 4.38 per cent in June, marking a significant rise compared to the previous month. The increase was largely driven by higher food prices, which pushed inflation beyond the Reserve Bank of India’s medium-term target of 4 per cent.
According to official figures, consumer price inflation based on the Consumer Price Index (CPI) rose from 3.93 per cent in May to 4.38 per cent in June. The latest reading represents the first time inflation has crossed the 4 per cent mark under the revised CPI series introduced earlier this year, with 2024 as the new base year.
Congress Says Inflation Has Affected Household Budgets
Congress general secretary Jairam Ramesh criticised the government over the rising cost of living, claiming that inflation and unemployment have increased financial challenges for people across the country.
In a post on social media platform X, Ramesh said that the latest inflation numbers reflected the difficulties faced by families managing daily expenses. He alleged that despite government claims of economic progress, ordinary citizens continue to struggle with rising prices.
Highlighting the latest data, he pointed out that retail inflation had reached a 17-month high, while rural areas recorded a higher inflation rate compared to urban regions.
The Congress leader said rural India witnessed inflation of 4.74 per cent, compared with 3.92 per cent in urban areas, indicating a greater impact on households dependent on essential goods and agricultural income.
Food Prices Remain Key Driver Behind Inflation Rise
The latest inflation increase was primarily linked to higher food costs. Data released by the National Statistics Office (NSO) showed that food inflation rose to 5.32 per cent in June, compared with 4.78 per cent in May.
Several essential and consumer goods recorded notable price increases during the month. Items such as ginger, tomatoes, raisins and certain precious jewellery categories witnessed significant inflationary pressure.
At the same time, some products experienced lower price growth. Potatoes, peas, vehicles such as cars and motorcycles, along with spices like cumin, were among the categories that recorded comparatively lower inflation.
Opposition Raises Concern Over Possible EMI Burden
The Congress also warned that higher inflation could create additional financial challenges if interest rates rise in response to price pressures.
Ramesh said that any increase in borrowing costs could affect middle-class families by increasing monthly repayments on home loans, vehicle loans and other financial commitments.
He questioned why economic gains and corporate profits should not translate into greater relief for ordinary citizens, arguing that the burden of inflation is disproportionately affecting common households.
Inflation Data Adds Political Heat Ahead of Economic Debate
The latest inflation figures have triggered renewed political debate, with the opposition using the data to question the government’s economic policies.
The Congress argued that controlling inflation should remain a priority and demanded greater focus on reducing pressure on household expenses, improving employment opportunities and strengthening purchasing power.
The government, however, has maintained that India’s economy remains among the fastest-growing major economies and that various policy measures have been taken to manage inflation and support citizens.
Rural Households Face Greater Price Pressure
The inflation gap between rural and urban areas has emerged as one of the key concerns in the latest data. While overall inflation stood at 4.38 per cent nationally, rural consumers faced a higher rate of price rise.
Economists often track rural inflation closely because food expenses form a larger share of household spending in villages compared to urban areas. A rise in food prices can therefore have a stronger impact on rural families.
Economic Challenges Remain at Centre of Political Debate
Inflation has continued to be a major political issue in India, with opposition parties frequently raising concerns about prices of essential commodities, unemployment and household expenses.
The latest figures have provided fresh ammunition for the Congress to challenge the government’s economic record, while the ruling party has highlighted growth, infrastructure expansion and welfare programmes as indicators of economic progress.
As inflation moves closer to the Reserve Bank’s comfort zone, policymakers will continue to monitor food prices and other factors influencing the cost of living. The coming months will determine whether price pressures ease or continue to affect consumer budgets across the country.