The latest statistics from the Iranian regime’s Statistical Center indicate that inflation continues to put pressure on households. This pressure is more severe in the food sector. Rising prices of essential goods have made the cost of living heavier for low-income households.
According to a report by the state-run ILNA news agency, year-on-year inflation across the country reached 87.9% in July. This means that households spent, on average, nearly 88% more to purchase a similar basket of goods and services than they did in July last year.
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Meanwhile, food products have been hit by the greatest inflationary pressure. Year-on-year inflation for food and beverages was reported at 128.1% in July.
Food Inflation; Surge in the Prices of Essential Goods
The published statistics present a troubling picture of rising food prices. The prices of oils and fats increased by 261.5% in July. Dairy products, milk, and eggs also experienced a 147.1% increase in prices. Red and white meat rose by 145.2%. The prices of bread and cereals increased by 116.7%. Fruit and dried fruit also recorded an increase of 115.4%.
These figures show that inflation in the food sector is not limited to non-essential goods. For low-income households, reducing consumption or eliminating certain goods may become a way to control expenses. However, many of these items are basic necessities, making it impossible to eliminate them.
The Wage–Cost-of-Living Gap for Workers
As inflation has risen, the gap between wages and living costs has also widened. The minimum wage for 2026, including benefits, has been reported at about 220 million rials (approximately $117).
In contrast, independent estimates put the cost of a minimum subsistence basket at about 700 million rials (approximately $370) per month. Based on this estimate, a minimum-wage worker faces a monthly shortfall of more than 400 million rials (approximately $212). This gap has increased economic pressure on working-class households. The monthly income of a minimum-wage worker has become severely insufficient even to cover a limited portion of essential living expenses.
Albert Baghzian, an economics professor at the University of Tehran, also told the state-run ILNA: “People continue to feel the increase in daily expenses.” He also warned about a possible increase in gasoline prices. According to Baghzian, “An increase in gasoline prices can raise transportation costs.” This increase could also affect the prices of goods and services through higher transportation costs. The formation of inflationary expectations could also trigger a new wave of price increases.
Inflation and Additional Pressure on Livelihoods
Persistently high inflation is occurring while the incomes of many working-class households have not kept pace with the rising cost of living. The result is a widening gap between income and essential living expenses. The published food-price figures also show that the greatest pressure has fallen on goods directly connected to household food supplies.
When the cost of a minimum subsistence basket is several times the minimum wage, the issue is no longer simply the rising prices of a few goods. The issue is the inability of a large segment of wage earners to cover their basic living expenses.
The July 2026 statistics provide a clear picture of the inflationary pressure on household life. Inflation of 87.9%, alongside food inflation of 128.1%, has placed a heavy burden on consumers.
Under such conditions, a possible increase in gasoline prices could also raise transportation costs and the prices of goods and services. The main issue now is not simply the rising price of one or several goods. Chronic inflation is directly eroding the purchasing power of wage earners and making the tables of working-class households smaller every day.
