TEHRAN — The Statistical Centre of Iran reported that food inflation rose by 128 percent in the month of Tir, spanning June 21 to July 20, compared with the previous year.

By July 2026, nationwide food inflation reached 134 percent, while rural areas experienced a rate of 140 percent, according to Iran International. The data indicates that eight of the 10 main food groups recorded inflation indices exceeding 100 percent during this period.

Oils and fats saw some of the steepest increases, with a point-to-point inflation rate of 261.5 percent. Dairy products, particularly milk and cheese, recorded an inflation rate of 147.1 percent, while red and white meat and their derivatives rose by 145.2 percent. Inflation for the bread and cereals group reached 116.7 percent, and the index for fruits and nuts hit 115.4 percent in the last month of the Iranian calendar.

The Middle East Forum detailed that Iran’s government phased out subsidized foreign currency for food imports in late 2025. Edible oils and fats recorded a 431 percent year-on-year price increase as of July 2026, according to the Middle East Forum.

Currency devaluation accompanied these policy changes, with the U.S. dollar reaching approximately 1.5 million rials in January 2026. By July 2026, the dollar surpassed 1.94 million rials on Iran’s open market. Following the elimination of subsidized exchange rates for certain imports, the Iranian government issued monthly cash credits worth approximately $7 at the open-market exchange rate.

Economic analyst Arzoo Karimi, cited by Deutsche Welle, stated that a three-person household in Iran now spends over 70 percent of its income on food alone. The official minimum monthly wage covers only 37 percent of the estimated cost of a basic living basket, leaving a 63 percent shortfall, as reported by the Iranian Labour News Agency (ILNA) and the Supreme Labour Council.

Earlier in the year, Iran’s annual food inflation reached between 112.5 percent and 113.8 percent in March 2026. During that month, bread and cereal prices increased 140 percent compared to the previous year, while milk, cheese, and egg prices rose 116.8 percent. For the period of May 22 to June 21, 2026, the Central Bank of Iran reported a year-on-year inflation rate of 83.1 percent, contrasting with the Statistical Centre of Iran’s figure of 88.6 percent for the same timeframe.

Iranian newspaper Jahan-e Sanat published an investigation describing supermarket workers encountering customers who allegedly concealed inexpensive food items or ate packaged products inside stores without paying.

Why It Matters

With eight of ten main food groups exceeding 100 percent inflation, households face a structural shift where salaries no longer cover basic nutrition. The disparity between rising costs for staples like bread and meat and the minimal government cash credits leaves families unable to maintain previous consumption levels. This economic pressure has altered daily survival strategies, leading to reports of customers concealing items or eating food inside stores without paying.