He also rapped the BJP for its unfulfilled promises to construct the Ram temple in Ayodhya, while justifying his party's action in preventing Pakistani ghazal singer Ghulam Ali from performing in Maharashtra.
"We are not able to face the people because of this inflation," said Thackeray, whose Shiv Sena is a junior ally of the Bharatiya Janata Party in Maharashtra.
"They (BJP) must remember that governments have fallen because of price rise of onions. Any more price rise, the government can be in danger," he warned.
Referring to a TV debate on cows, Thackeray demanded to know why debates were not taking place on inflation.
He also attacked the BJP on the delay in the Ram Temple coming up in Ayodhya and demanded declaring India as a 'Hindu nation' and implementing the uniform civil code.
"They say, temple will be made at the same (disputed) venue, but don't give a deadline for it... we don't want Hindus only ringing temple bells, we want Hindus who can fight terror," he said, as the Shiv Sena entered its 49th year of formation.
Thackeray said the Dadri lynching had led the whole country to having hang its head in shame, not the ink attack on veteran journalist Sudheendra Kulkarni by his party activists opposing the release of former Pakistan foreign minister Khurshid Mahmud Kasuri's book.
"Why can't the people yet identify with the government? What is the need to encourage such things? Tomorrow if (mafia don) Dawood Ibrahim writes a book claiming he is not involved in bomb blasts, should we believe him and allow him to release it full security?" he asked.
On the concert cancellation, he reiterated that when Pakistan is killing Indian soldiers on the borders, why should Ghulam Ali be allowed to sing here.
Pakistan declined to accept our Eid sweets, then where is the question of maintaining cultural ties with them, he said.
"Why do they get upset whenever we target Pakistan? My speech today is being targeted by enemies (like Pakistan) and even friends. But, we are like this only. We cannot change - take it or leave," Thackeray declared amidst applause.
On the issue of continuing in power and still attacking BJP, Thackeray said questions are raised on this, even by persons like Nationalist Congress Party president Sharad Pawar, but the Sena would not unnecessarily bring down the Maharashtra government.
"We know for long to continue in government. Ultimately, we are bound to the people, not to power," he claimed.
He also trained guns on union minister V. K. Singh's whose remarks about a dog's stoning while reacting to the tragic death of two Dalit children in Haryana created a huge row, asking why did Prime Minister Narendra Modi come to lay the foundation stone for Ambedkar Memorial here last week. "Why should this drama continue?" he asked.
Earlier, Sena MP and party mouthpiece "Saamana" executive editor Sanjay Raut said that the party must be brought to power on its own majority and later, the party flag must flutter atop parliament also, while promising to fulfil V.D.Savarkar's dream of "Akhand Bharat".
Top party leaders, party ministers and Yuva Sena chief Aditya Thackeray were present at the rally.