Iran's soaring inflation deepens household hardship

Iran is experiencing a sharp rise in inflation, with the Statistical Centre reporting record point‑to‑point price increases for food, dairy, meat, rice, housing and transport by the end of the Iranian month of Khordad. The surge has eroded purchasing power, especially for low‑income families, leading to reduced consumer demand and a slowdown in parts of production.

The Central Bank shows liquidity exceeding 15,500 trillion rials and a monetary base near 2,200 trillion rials, while government debt to the banking system reached about 2,443 trillion rials in December, up roughly 40 % from the end of the previous year. Experts warn that unchecked liquidity growth could fuel further inflation, risking an “hyper‑inflation” scenario. Analysts cite both external pressures—sanctions and regional tensions—and internal structural issues such as chronic budget deficits, weak financial discipline and low investment as drivers of the crisis.