As prices of food and essential goods continued to rise, Iran’s regime-run Statistics Center reported in its latest statement that point-to-point inflation for households in August surpassed 42%.
The report, published on Thursday, August 28, shows that point-to-point inflation, which had fluctuated in the 30% range for 18 months and had reached 39.4% in June, climbed to 41.2% in July and continued its upward trend to 42.4% in August.
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This means Iranian households in August this year spent on average 42.4% more than in August last year for the same basket of goods and services—an increase 1.2 percentage points higher than in July.
On the same day, Thursday, August 28, as these figures were released and the European Troika (France, Germany, and the UK) triggered the “snapback mechanism,” the price of gold coins and the US dollar surged sharply in Iran’s open market, with the dollar reaching 1,020,000 rials.
This comes while Iranian workers earn roughly $150 per month.
Earlier, Iran’s Chamber of Commerce had warned that with the activation of the snapback mechanism, the dollar could rise to between 1.35 million and 1.65 million rials. It predicted inflation between 75% and 90% and continued negative economic growth down to -3%.
Following reactions from regime officials and state-run media, the Chamber of Commerce Research Center denied publishing the report titled “The Economic Effects of the Return of UN Security Council Sanctions on Iran’s Economy.”
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Meanwhile, according to the Statistics Center, the Consumer Price Index (CPI) in August reached 370.5. This was a 2.9% increase compared to the previous month and a 42.4% increase compared to August last year.
Annual inflation in the 12 months ending in August 2025 reached 36.3%, one percentage point higher than the previous month.
The Statistics Center report shows that monthly inflation for households in August was 2.9%.
Among product groups, “food, beverages, and tobacco” saw the largest increase with 3.9% growth, while “non-food goods and services” registered 2.3%.
Based on the report, annual inflation for households in August stood at 36.3%, up one percentage point compared to the previous month.
As Iran’s inflation rate hits its highest level in recent months, the three European countries have also announced the activation of the snapback mechanism, beginning the process of reinstating UN Security Council sanctions on Iran’s regime.
If these sanctions take effect after the 30-day period, the economic pressure on Iran’s regime will intensify, and the outlook for inflation and the livelihoods of Iranian households will look even bleaker.
