Opposition parties in India, including the Communist Party of India (Marxist) and the Congress, have launched a scathing attack on Reserve Bank of India (RBI) Governor Sanjay Malhotra, accusing him of presenting “unrealistic and politically motivated” statistics on inflation. In a press conference following the central bank’s monetary policy committee (MPC) meeting on Wednesday, Governor Malhotra claimed that inflation in India had dropped to its lowest in six years, even indicating a negative growth of 0.2% in June. “From vegetables to daily food items, prices are now within the affordability of the common man,” Malhotra said, citing RBI data. The governor also noted that food prices had begun to decline since June.
However, his remarks sparked immediate backlash from opposition parties and common citizens alike today.
“While the common man struggles to manage household expenses, the RBI governor says inflation is nearly non-existent,” said a CPI(M) statement. “This is nothing but data manipulation in service of a political agenda.”
Congress state spokesperson Soumya Aich Roy echoed the criticism, saying, “BJP is a party whose words cannot be trusted. After so many years in power, millions of Indians still live below the poverty line.” He also blamed West Bengal Chief Minister Mamata Banerjee, calling her “Modi’s accomplice” in pushing the state toward “extreme uncertainty.” Aam Aadmi Party leader Sanjay Singh also questioned the RBI’s ground reality. “Is there any connection left between the government and the people? In Delhi, from school fees to groceries, everything is unaffordable. The RBI’s claims are divorced from reality.” Data from a recent household expenditure survey appears to support these concerns, indicating that around 39% of an average Indian household’s budget is now spent on food. Despite claims of falling prices, items such as mustard oil, cooking oil, and vegetables have seen sharp increases — with cucumbers and brinjals retailing at Rs 100 per kg, ridge gourds at Rs 80, and green chilies at Rs 120.
The RBI attributed the supposed drop in inflation to falling prices of vegetables and pulses, although it provided no region-specific breakdown to support this. Across major metros — Kolkata, Delhi, Mumbai, Bengaluru — local markets reflect a different reality.
Critics also questioned the RBI’s decision to keep the repo rate unchanged, despite its own claim of inflation easing. “If inflation is truly under control, why not cut the repo rate by at least 25 to 50 basis points and provide relief to the middle class through lower lending rates?” one CPI(M) member asked.
The RBI forecast India’s inflation rate for the current financial year at just 3.1%, but simultaneously revised GDP growth estimates downward from 6.7% to 6.5%, raising further doubts about the credibility of its projections.
“The country is being ruled by lies and jumlas,” said Sayan Deep Mitra, a CPI(M) state committee member. “And the chief architect of this politics of deception is none other than Prime Minister Narendra Modi.”
