Inflation in India is affected by various factors, some of which include an increase in demand due to rising income levels, supply-side constraints due to issues like lower agricultural output and international factors such as oil prices. The Congress party's argument is that the current inflation is being misinterpreted as solely due to supply-side constraints. The party asserts that the government's policies like increasing taxes and reducing government spending have created a decline in demand and thereby impacted aggregate demand. The party also notes that the current inflation rate is not a standalone issue but is part of a larger economic problem with rising unemployment and decreasing consumer confidence. In conclusion, there are various contributing factors to inflation, and while supply-side constraints are an important factor, its explanation should also consider other economic indicators.