[REVISION HISTORY]

Iran food inflation and subsidy challenges

Updated 7 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-07 14:30 UTC → 2026-09-09 00:52 UTC · added ~~removed~~

In late June 2026, Iran’s staple bread prices had roughly doubled, with inflation for loaf varieties exceeding 140% in the first five months of 2025. The minimum monthly wage covered only about 37% of a basic consumption basket, leaving low-income workers with a gap of more than 60%. To address this, a food-coupon scheme provides a fixed monthly credit of one million rials per household. Despite a 134% rise in food prices, the credit has not been adjusted. Economist Morteza Afkhah noted that the fixed monetary value cannot keep pace with rapid inflation and currency devaluation, turning the aid into a form of “rent” rather than lasting relief. In August 2026, the government rolled out the thirteenth installment of the Kālābarg program using a staggered schedule. By August 27, the Ministry of Cooperatives, Labour, and Social Welfare completed the distribution for the month of Mordad, targeting household heads with national IDs ending in 7, 8, or 9. These recipients receive 1 million tomans per person, usable at contracted supermarkets and chain stores. By mid-September 2026, the Ministry began the phased distribution of September grocery coupon credits. The first phase, starting September 15, included households with national IDs ending in 0, 1, or 2, as well as those covered by the Imam Khomeini Relief Foundation, the State Welfare Organization, and the armed forces. Subsequent groups are scheduled for late September and early October. While the credit remains at one million tomans per person, Labor Minister Ahmad Midri and Deputy Minister Yaghoub Andayesh indicated that discussions regarding potential increases are ongoing. Any adjustment depends on available financial resources and requires parliamentary agreement. If funding is secured, increases may be targeted specifically at low- and middle-income groups, excluding higher-income households.

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