Overview

• Telangana’s CPI data showed urban inflation at –0.93% in June and –0.44% in July, while rural inflation fell to –0.91% and –1.54% respectively, marking consecutive deflation.
• T Harish Rao warned that the price declines represent an economic red alert likely to undermine businesses, employment and investment.
• K T Rama Rao condemned the state government’s policies as hopeless governance and urged the launch of immediate reforms and job-creation programmes.
• Opposition figures blamed cuts to welfare schemes for dampening household demand, highlighting unpaid Asara pensions, Mahalaxmi grants, Vidya Bharosa cards and Dalit Bandhu assistance.
• Critics argued that declining capital investment has strained agriculture, real estate and small enterprises, intensifying fiscal stress.