New data from the Statistical Center of Iran show a dramatic increase in food prices across the country, with annual food inflation reaching around 130 percent and some staple products becoming several times more expensive than a year ago.
The rise in food prices has followed the government’s decision to phase out subsidized foreign currency for imports of food products and livestock feed. For years, Tehran used preferential exchange rates to shield consumers from global price fluctuations. As the government reduces these subsidies, a growing share of import costs has been passed on directly to households.
For years, Tehran used preferential exchange rates to shield consumers from global price fluctuations.
Among food products, cooking oil recorded one of the steepest increases. Prices in the latest month were 431 percent higher than a year earlier, according to official data. Egg prices surged by 343 percent, and poultry prices rose by 287 percent. Different categories of meat recorded increases ranging from 113 percent to 278 percent. Rice, dairy products, and other essential food items also have experienced sharp price hikes.
Even products that recorded the lowest inflation rates were not spared. Potatoes, for example, posted the smallest increase among major food items, yet prices were still roughly 20 percent higher than a year earlier.
Food products and livestock feed account for roughly one-third of Iran’s total imports. Until late 2025, the government allocated subsidized foreign currency at an official rate of 280,000 rials per U.S. dollar for these imports. By comparison, the dollar now trades above 1.5 million rials on the open market.
The broader supply situation remains difficult to assess. While Iranian officials insist that essential goods continue to be available, data from the Central Bank of Iran indicate that imports were already under pressure before the recent conflict. According to official figures, Iran’s imports declined by 32 percent during the fiscal year that ended on March 20, 2026.
Meanwhile, U.S. Central Command (CENTCOM) says it has allowed 36 vessels carrying humanitarian cargo to pass through the naval blockade and enter Iranian ports, underscoring the challenges facing supply chains during the crisis.
Last year, the government expanded its electronic coupon program, providing approximately ten million rials per month in purchasing credits for each citizen. However, the continued depreciation of the Iranian currency and the rapid rise in food prices have reduced the program’s real value to less than ten dollars.
With many essential goods now costing several times more than they did a year ago, the monthly subsidy covers only a fraction of household food expenses. Economists say the program’s ability to offset the impact of inflation has weakened significantly.
“This is no longer about a household consumption basket; it is about the gradual disappearance of people’s dining tables.”
Economic journalist Azadeh Mokhtari highlighted the trend in a post on X, writing: “This is no longer about a household consumption basket; it is about the gradual disappearance of people’s dining tables. What’s more concerning is that developments in production and markets point to even higher inflation in the coming months.”
The government’s response to the worsening cost-of-living crisis has also generated criticism. Mohsen Hajimirzaei, chief of staff to President Masoud Pezeshkian, recently said: “Although prices have increased, if famine had occurred, higher prices would have seemed insignificant by comparison.” The remarks were published on the Iranian presidency’s official website under a similar headline.
The statement triggered criticism on social media, where many users described growing difficulties in meeting basic living expenses. One user identified as Amir wrote: “Inflation has become terrifying. People’s salaries are no longer enough to cover even a few days of living expenses each month.”
The combination of soaring food prices, currency depreciation, declining imports, and the diminishing effectiveness of government support programs points to deepening pressure on Iranian households. Even if market conditions stabilize in the coming months, the erosion of purchasing power is likely to leave a lasting impact on living standards across the country.
