Iran's Hemmati Acknowledges Economic Burden as Inflation Nears 90 Percent
Central bank data shows the cost of a basic food basket for three people has doubled in a year, forcing households to cut spending on meat and savings.
By Layla Fontaine ·
Tehran households are reducing consumption of meat and dining out as annual inflation reached 89.9 percent in September.
The economic strain has intensified following a war launched by the United States and Israel on February 28, which damaged infrastructure. A US naval blockade of Iranian ports has cut oil exports and imports, while Iranian attacks in the Strait of Hormuz have disrupted shipping. In August, the US Treasury initiated a new sanctions campaign labeled Economic D-Day to isolate the Iranian financial sector. These pressures have compounded years of falling currency value and previous sanctions.
Factnameh, a Canadian-based fact-checking organization, estimated that a basket of 11 essential food items cost 56 million rials per person in September. This totals more than 168 million rials for a family of three. The government provides a food voucher worth 10 million rials, which now covers less than 18 percent of the per-person cost. That coverage dropped from approximately 30 percent in December 2025. The average monthly wage in the country is estimated at around 100 US dollars.
Central Bank Governor Abdolnaser Hemmati spoke on October 23 about the heavy burden facing Iranians. He stated that efforts to isolate the country's economy had failed to achieve their main objective. His remarks came as data showed the monthly cost of living rising sharply across the capital.
Residents in central Tehran are adjusting their shopping habits to cope. One family reserves most meat and chicken for their children, while the parents eat legumes and meat substitutes. They worry that further price increases will force them to reduce protein for the children as well. Cooking costs have nearly doubled in one year. A serving of ghormeh sabzi with rice now costs 23 million rials, and potato patties cost about 4 million rials.
A retired woman on a monthly pension of 180 million rials has cut back on meat since the Iranian new year in March. She worries about her health but notes that she pays no rent. A middle-aged man in western Tehran earns one billion rials per month from salary and rental income, well above the Tehran average of 600 million rials. He stated that he can live for today but has no savings for tomorrow. A 28-year-old woman earning 400 million rials monthly now splits dishes with friends at cafes to manage costs.
A newly married woman in Tehran redirected funds originally saved for a wedding celebration to a housing deposit. She now works two shifts to repay a loan. She described her home as a place used primarily for sleeping and noted that she feels poorer each morning.
