While only about five months have passed since the implementation of the plan to remove subsidized foreign currency rates for some essential goods, the latest economic reports show that the cost of the basket of goods covered by the electronic coupon program has risen sharply and far exceeded the amount of government support being paid.
According to statistics published by economic media outlets affiliated with Iran’s regime, the total price of items included in the electronic coupon basket, which was around 21.8 million rials before the removal of subsidized currency rates, has now reached approximately 37.8 million rials. Meanwhile, the amount of support paid to eligible households has remained fixed at 10 million rials with no increase. It is worth noting that the U.S. dollar exchange rate has surged in recent months to an unprecedented 1.9 million rials per dollar, while a worker’s salary is approximately $126.
The Rising Cost of Food in Iran; Hidden Pressure on Large Families
At the same time as food prices have risen, the foreign exchange rate has also experienced an unprecedented jump. The price of the U.S. dollar on the open market, which stood at around 820,000 rials before the 12-day Iran-Israel war in June 2025, has now reached approximately 1.9 million rials. As a result, the value of the dollar has increased by more than 120% over roughly 10 months, and the collapse of the national currency has imposed a new wave of price hikes on consumer and food markets.
When implementing the plan to remove subsidized currency rates, the Iranian regime had promised that the resources generated from the measure would be directly returned to the public through electronic coupons and that the value of the credit would increase in line with inflation. Ahmad Meydari, head of the Planning and Budget Organization, had also promised that the coupon credit would be reviewed every three months based on the inflation rate.
However, no increase has so far been applied to the amount of this subsidy. On May 6, Fatemeh Mohajerani, spokesperson for the government of Iranian regime president Masoud Pezeshkian, referring to the government’s financial limitations, said that the government wanting to increase the coupon amount and actually having the ability to do so are two different matters.
Meanwhile, official reports and data published in domestic media indicate the continued upward trend in food inflation. Some estimates show that inflation in food items has surpassed 70%. A recent assessment also shows that in April 2026, the cost of a household food basket was equivalent to 85% of the minimum income of a married worker with two children, highlighting the severe decline in purchasing power and the deepening livelihood crisis in Iran.
