Food Inflation Hits 115% as War Ravages Iran, Citizens Struggle
Maziar Motamedi
Food prices in Iran have surged 115% year-on-year amid 73% overall inflation and a record low currency, driven by the U.S.-Israel war and naval blockade. Citizens face severe shortages as subsidies remain under $10 per month. The government blames the conflict while critics point to economic mismanagement and an ongoing internet blackout.
Tehran, Iran – Skyrocketing inflation is threatening household food security in Iran as conflict escalates, according to newly released data. Diplomatic efforts to end the war launched by the U.S. and Israel are also intensifying.
On May 4, President Masoud Pezeshkian told a group of officials: “People must understand the reality of the country's conditions and limitations.” He suggested that through cooperation and national unity, the difficulties could be resolved.
The remarks came a day after the Statistical Center of Iran (SCI) reported that inflation for the month of Farvardin (ending April 20) hit 73.5% year-on-year, with a 5% monthly increase. The Central Bank of Iran, using a different methodology, put inflation at 67% year-on-year and 7% month-on-month.
Both figures show inflation accelerating sharply, among the highest globally in recent years, steadily impoverishing the population.
Food inflation is far steeper. According to SCI, food prices in the first month of the year surged 115% year-on-year, with many staples tripling. Solid vegetable oil rose the most (375%), followed by liquid cooking oil (308%), imported rice (209%), domestic rice (173%), and chicken (191%). Lower increases included butter (48%), baby milk powder (71%), and pasta (75%).
A Tehran resident told Al Jazeera she can no longer afford many items compared to last month. Majid, a kebab shop worker in the capital, said liver prices have doubled and the shop has raised prices three times recently due to either supply shortages or sheep exports.
Iran's rial has also hit new lows in the past two weeks, trading on the free market at around 1.77 million per U.S. dollar on May 4, compared to 830,000 a year ago.
In response, the government has rolled out subsidies and vouchers and tried to curb speculation. However, these measures lack a clear macroeconomic stabilization package as the U.S. tightens its naval blockade of Iranian ports. Monthly per capita subsidies are currently under $10, and the administration is considering an increase but faces a budget crisis.
The Pezeshkian government and Central Bank Governor Abdolnasser Hemmati blame the war that began in late February and are coordinating with the judiciary to combat price hikes and speculation. Meanwhile, some lawmakers and media outlets linked to the Islamic Revolutionary Guard Corps (IRGC) argue the price surge is suspicious and part of an enemy “economic revenge” campaign.
A guest on the Ofogh TV channel said: “I want the Iranian people not to be fooled by the price increase orchestrated by the enemy. The economic achievements of this war are unparalleled.”
Economic burdens are further compounded by a near-total internet blackout imposed by authorities over the past 72 days. Many government officials and telecom companies oppose the shutdown but claim they are not responsible, as it was ordered by the Supreme National Security Council and is expected to last until the war ends.
The Iran Internet Business Association said in a statement on May 3: “The country's startup ecosystem is dead; we are looking for its tombstone.”
