Tehran Households Face 89.9 Percent Inflation and 168 Million Rial Food Bills

Annual inflation in Iran reached 89.9 percent in September, a figure that has reshaped household budgets across Tehran. The cost of living has risen so sharply that a family of three now requires 168 million rials, or roughly $61.70, to purchase a basket of 11 essential food items.

These costs have outpaced income and government support. Factnameh, a Canadian-based fact-checking group, calculated that the per-person cost of these essentials was 56 million rials in September. The government’s standard food voucher, valued at 10 million rials, now covers less than 18 percent of that amount. This coverage has dropped from about 30 percent in December 2025. The average monthly wage in the country is estimated at $100.

Central Bank Governor Abdolnaser Hemmati addressed the economic pressure on October 23. He acknowledged the "heavy burden" currently borne by Iranian citizens. Despite this admission, Hemmati stated that external efforts to isolate the country’s economy had failed to reach their primary goals.

Households are responding by altering their consumption habits. A newly married woman in Tehran, who asked to remain anonymous, said her wedding savings were diverted to a housing deposit. She now works two shifts to repay a loan. "Our home has turned into the place we just sleep," she told Radio Farda. Her husband spends most of his time working, and the couple reports feeling poorer each morning.

Other families are rationing protein. One woman in Tehran said her family saves meat and chicken for their children, who are still growing. She and her husband eat legumes and meat substitutes instead. They fear that further price increases will force them to cut meat from the children's meals as well. For a retired woman living on an 180 million rial pension, the strain is visible in her diet. She has reduced meat consumption since March and worries about her health, though she notes that not paying rent helps.

The financial squeeze extends to higher earners. A middle-aged man in western Tehran earns a billion rials per month, a sum that exceeds the average Tehran household income of 600 million rials. Despite this, he stated, "I can live for today, but I have no savings for tomorrow." He has stopped traveling, dining out, and saving money. A 28-year-old woman earning 400 million rials a month has changed how she socializes. She and her friends now split a single dish between two people to make cafe visits affordable.

The economic shift follows a series of shocks. The United States and Israel launched a war against Iran on February 28, damaging infrastructure and disrupting trade. A US naval blockade reduced oil exports, while Iranian attacks on the Strait of Hormuz hindered shipping. In August, the US Treasury began a sanctions campaign labeled "Economic D-Day" to isolate Tehran financially. A Radio Farda field survey in central Tehran found that making chicken and barberry costs nearly twice as much as a year ago. A meal of ghormeh sabzi with rice now costs 23 million rials, and potato patties cost about 4 million rials.