Congress attacks govt over inflation, falling real wages

The opposition Congress party has mounted a fresh attack on the government's economic management, contending that while officials claim conditions are improving, ordinary citizens continue to face rising costs and eroding purchasing power.

Party spokesperson Jairam Ramesh pointed to wholesale price inflation as evidence that the government's optimistic messaging does not match ground realities. He argued that price increases have outpaced income growth for workers and consumers across the country.

According to data from the Centre for Monitoring Indian Economy (CMIE), inflation-adjusted wages have declined consistently, registering a 5.7 per cent drop since April, Ramesh said. This suggests that even where nominal wages have risen, they have failed to keep pace with inflation, effectively reducing workers' real purchasing power.

The criticism reflects broader concerns about India's inflation trajectory and its impact on household finances. While the Reserve Bank of India and government have highlighted recent moderation in consumer price inflation, wholesale prices have remained sticky, affecting production costs and retail prices of goods.

The Congress's focus on real wage erosion underscores the divergence between headline economic data and lived experience, a recurring theme in opposition criticism of the current government's economic record.