Leader of Opposition Rahul Gandhi on Saturday warned that India could be headed for a fresh wave of inflation, linking it to the weakening rupee and rising fuel costs amid the ongoing West Asia conflict.
In a post on X, Gandhi said the rupee’s slide towards the 100 mark against the US dollar, coupled with a sharp rise in industrial fuel prices, was a clear indicator of inflationary pressures building up in the economy.
“The rupee weakening against the dollar and heading towards 100, along with a sharp rise in industrial fuel prices — these aren't just numbers; they're clear signals of the inflation to come,” he said.
His remarks came after the rupee fell 64 paise to close at a record low of 93.53 against the US dollar, weighed down by rising crude oil prices and global market uncertainty.
Gandhi argued that the combined effect of a weakening currency and higher fuel prices would have a cascading impact across sectors, directly affecting households.
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He outlined four key consequences: production and transportation costs would rise; micro, small and medium enterprises (MSMEs) would be hit hardest; prices of essential goods would increase; and foreign institutional investor (FII) outflows could accelerate, putting further pressure on the stock market.
“And it's just a matter of time, after the elections, prices of petrol, diesel, and LPG will be hiked too,” he added, referring to the upcoming Assembly polls in states including Assam, West Bengal, Kerala and Tamil Nadu, as well as Puducherry.
Taking a swipe at the Centre, Gandhi accused the government of lacking a coherent plan to deal with the economic challenges.
“The Modi government has neither direction nor strategy – just empty rhetoric. The question isn't what the government is saying – it's what's left on your plate,” he said.
The concerns come amid disruptions linked to the West Asia conflict, which have pushed up energy costs and raised fears of supply constraints. Reports of panic buying and long queues at LPG depots have emerged in some regions, even as the government has assured adequate supplies.
Senior Congress leader Shashi Tharoor attributed the rupee’s fall to global factors, saying the decline was driven by international forces beyond the government’s control, while also urging a balanced assessment of currency movements.
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