Iran food inflation reaches 121.8% as minimum wage loses purchasing power

In September 2026, food inflation in Iran reached 121.8% annually, according to data from the Statistical Centre of Iran. For a household of four, food expenses accounted for approximately 78% of the minimum wage.

The economic situation is further complicated by a recession in the industrial and mining sectors, which saw an 8% decline in the three months ending in August 2026 compared to the previous year. This downturn is attributed to rising input costs, energy constraints, liquidity shortages, and weakened demand.

Inflationary pressures are driven by monetary expansion, currency depreciation, and international trade restrictions. While overall inflation was reported at 4.24% for the month, the impact varies across income levels. Although higher-income deciles saw faster increases in certain non-food categories like transportation and clothing, lower-income households face greater burdens due to the rising costs of essential, non-discretionary items such as housing and food.