Inflation – Congress Questions Centre as Retail Inflation Climbs in June
Inflation –Rising retail inflation has triggered a fresh political confrontation, with the Congress accusing the Union government of failing to shield ordinary families from increasing living costs. The opposition party said higher prices over the past several years have placed sustained pressure on household finances and questioned when Prime Minister Narendra Modi would directly address the economic concerns affecting citizens. The remarks came after the latest official figures showed inflation accelerated during June, largely due to a sharp rise in food prices.
Retail Inflation Moves Above RBI’s Target
Government data released by the National Statistics Office (NSO) showed that Consumer Price Index (CPI)-based retail inflation increased to 4.38 percent in June from 3.93 percent in May. The latest reading crossed the Reserve Bank of India’s medium-term inflation target of 4 percent under the revised CPI series, which now uses 2024 as its base year. Food inflation also moved higher, climbing to 5.32 percent in June compared with 4.78 percent recorded a month earlier.
Congress Targets Government Over Rising Prices
Reacting to the latest figures, Congress general secretary Jairam Ramesh criticised the BJP-led government, claiming that inflation and unemployment have become the defining economic challenges during its years in office. In a social media post, he argued that increasing prices have steadily weakened the financial stability of ordinary households and cited the official inflation figures as evidence that the burden on consumers continues to grow.
Ramesh also pointed to rural inflation, which stood at 4.74 percent in June, saying residents outside urban centres were facing an even greater rise in living expenses. According to him, the latest economic indicators reflect mounting financial pressure on families across the country.
Concerns Over Possible Increase in Loan Costs
The Congress leader further warned that persistent inflation could raise expectations of higher lending rates, potentially increasing the cost of servicing home and vehicle loans. He said such a scenario would add further pressure on middle-class households already coping with higher day-to-day expenses.
Questioning the government’s economic priorities, Ramesh alleged that the benefits of growth were not reaching common citizens. He also asked when the Prime Minister would publicly respond to the difficulties faced by people dealing with rising prices and other economic challenges.
Food Prices Continue to Drive Inflation
According to the NSO data, food remained the biggest contributor to the increase in overall inflation during June. Among the products that recorded the highest annual inflation were silver, gold, diamond and platinum jewellery, along with ginger, tomatoes, raisins and monacca.
On the other hand, several items either witnessed relatively lower inflation or remained comparatively stable. These included potatoes, peas, motor cars and jeeps, cumin, motorcycles and scooters, indicating that price movements varied considerably across different product categories.
Rural Areas Register Higher Inflation Than Cities
The latest statistics also highlighted a gap between rural and urban inflation levels. Retail inflation in rural India was recorded at 4.74 percent, noticeably higher than the 3.92 percent registered in urban areas. The difference suggests that households in rural regions continued to experience stronger price pressures, particularly in essential goods and food-related expenses.
The June inflation figures are likely to remain a key topic in the political and economic debate in the coming weeks, with policymakers, businesses and consumers closely monitoring future price trends and their possible impact on interest rates, household budgets and overall economic activity.