EL7.AI
Macro EconomyMedium•28 October 2026•
2 min read

Food Prices in Iran Jump 121.8% Annually as Pressure on Households Widens

Key Facts

1Food and beverage prices rose 121.8% year over year in September.
2Annual inflation was 73.6% in September, and prices were about 90% higher than a year earlier.
3The minimum cost of living for a three-member family was estimated at about $336 a month, compared with an average wage of about $92.
4The central bank launched a program to sell up to $2 billion through state-owned banks to support the rial.

Food and beverage prices in Iran rose 121.8% year over year in September, according to official data cited by Reuters. The agency said the increase had prompted households to cut spending in other areas. In the same month, consumer prices were about 90% higher than a year earlier. The annual inflation rate was 73.6%, according to figures cited by Reuters. These indicators come as the estimated cost of living for a three-member working family exceeds the average monthly wage by more than three times.

Reuters estimated the minimum monthly cost of living for a three-member working family at about $336. By comparison, the average monthly wage was about $92 at the free-market exchange rate, according to the estimate cited by the agency on October 28, 2026. Reuters said the gap between costs and wages was adding to pressure on household budgets. Rents were 32.8% higher year over year in September. The cost of housing, utilities and fuel also rose about 38%, adding to essential spending.

Pressure extended to the labor market: the official unemployment rate was 9.1% in spring 2026, up 1.8 percentage points from the same period a year earlier, according to Reuters. In a statement cited by the agency on September 3, President Masoud Pezeshkian said total trade had declined by 25% to 35%. He added that imports had been hit harder than exports. These figures place the decline in trade alongside rising prices and weakening purchasing power among the pressures facing Iran's economy. Pezeshkian's statement did not link these figures to September's inflation rate.

In mid-October, Central Bank Governor Abdolnaser Hemmati said U.S. claims that Iran's economy was collapsing were “an illusion,” according to Reuters. The agency quoted Hemmati as saying the bank's priorities included curbing inflation and stabilizing expectations, as well as maintaining financial stability and the continuity of banking and payment services. The priorities also included securing foreign currency for medicines and essential goods. In late September, the central bank launched a program to sell up to $2 billion through state-owned banks to support the rial. The program was part of measures announced by the bank before the inflation report was published on October 28.