Rahul flags rupee slide towards 100 vs dollar, warns of inflation impact

Lok Sabha Leader of Opposition Rahul Gandhi on Saturday warned that the rupee’s sharp slide against the US dollar could trigger a broad rise in prices across the economy, arguing that currency weakness and rising industrial fuel costs will directly strain household budgets.

The Leader of Opposition in the Lok Sabha said the rupee’s depreciation, coupled with increasing energy costs linked to the West Asia conflict, signals further inflationary pressure that could affect production, transport and everyday consumption.

“The rupee weakening against the dollar and heading towards 100, along with a sharp rise in industrial fuel prices — these are not just numbers; they are clear signals of the inflation to come,” Gandhi said in a post in Hindi on X.

He argued that a weaker currency makes imports costlier, which in turn raises input costs for businesses and eventually pushes up prices of essential goods. According to Gandhi, micro, small and medium enterprises (MSMEs) are likely to be among the worst affected as higher fuel and logistics costs squeeze margins.

“Production and transport will become more expensive; MSMEs will be hit the hardest; prices of everyday items will go up; and FII money will flow out even faster, putting more pressure on the stock market,” he said.

Gandhi also alleged that fuel prices could be increased after Assembly elections scheduled next month in West Bengal, Tamil Nadu, Assam, Kerala and the Union Territory of Puducherry.

“It’s just a matter of time — after the elections, the prices of petrol, diesel and LPG will be hiked too,” he claimed.

The Congress has criticised the government’s handling of the economic situation arising from geopolitical tensions in West Asia, which have affected global energy markets and, in turn, India’s import bill.

Gandhi accused the government of downplaying the economic risks and relying on “empty rhetoric” instead of a coherent strategy to manage inflationary pressures. “The question is not what the government is saying, it is what is left on your plate,” he said, arguing that rising costs of daily essentials will have a direct impact on household finances.

With PTI inputs