Amid Iran’s deepening economic crisis and mounting pressure on household livelihoods, the Statistical Center of the Iranian regime announced that the point-to-point inflation rate reached 87.9% in July 2026, while annual inflation rose to 66%.
Point-to-point inflation measures price changes in a given month compared with the same month of the previous year, while annual inflation compares the average prices over the past 12 months with the average prices during the preceding 12-month period.
As a result, Iranian households paid nearly 88% more on average in July 2026 than they did in July 2025 to purchase the same basket of goods and services.
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The annual inflation rate also indicates that the average prices of goods and services during the year ending in July 2026 were 66% higher than during the corresponding previous period.
The Consumer Price Index (CPI) reached 676.9 points in July, reflecting a 3.1% increase compared with June.
In July 2026, rural households experienced the highest inflationary pressure compared with the national average. Point-to-point inflation in rural areas reached 106.9%, while monthly inflation was recorded at 3.4%.
In recent months, accelerating inflation and sharp increases in the prices of essential goods have placed significant economic pressure on households and created serious challenges for the livelihoods of a large segment of society.
On July 27, Eghtesad News, an Iranian news website, reported that as the economic crisis has intensified, installment payments have become increasingly common in Iran’s healthcare market, with services such as dental care and even medications now being offered on installment plans, a trend reflecting the further decline in households’ financial capacity.
Rising food and service prices
According to the Statistical Center of Iran, monthly household inflation stood at 3.1% in July 2026. The rate was 2.5% for the “food, beverages, and tobacco” category and 3.6% for the “non-food goods and services” category.
A closer look at price changes shows that vegetables and legumes recorded the highest monthly price increase at 8.3%.
They were followed by “unclassified food products” at 6.9%, bread and cereals at 5.9%, furniture, household equipment, and routine home maintenance at 5.7%, and tea, coffee, and cocoa at 5.5%.
The “unclassified food products” category includes items that do not fall under the main food groups such as meat, dairy, fruit, vegetables, or bread, and mainly consists of spices, sauces, seasonings, and food additives.
Monthly inflation also reached 5.3% in healthcare, 5% in transportation and vehicle-related services, 4.8% each in clothing and footwear and in fruit and nuts, 4.6% in recreation and culture, 4.3% in sugar, sweets, and confectionery, and 3.3% in dairy products, cheese, and eggs.
By contrast, red and white meat was the only major category to record a price decline in July, posting a monthly inflation rate of negative 4.7%.
On July 15, the state-run EcoIran news website reported that more than seven million people in Iran live in informal settlements, writing that rising inflation and the housing crisis have fueled the expansion of marginal settlements across the country.
Inflation gap between income deciles widens
The Statistical Center of Iran said annual inflation varied across income deciles, ranging from 63.9% for the tenth decile (the highest-income households) to 73.5% for the second decile.
As a result, the inflation gap between income deciles reached 9.6 percentage points in July, an increase of 1.2 percentage points from 8.4 percentage points in the previous month.
This disparity indicates that low-income households continue to bear a heavier burden from rising living costs than higher-income groups, and that the inflation gap between income groups is widening.
In recent weeks, amid escalating regional tensions and growing uncertainty over the future of negotiations between Tehran and Washington, Iran’s foreign exchange market has moved upward.
Sharp exchange rate fluctuations undermine economic stability and deprive businesses and households of the ability to plan and predict future conditions.
This uncertainty can reduce investment and production and, by increasing inflationary pressures, further raise the cost of living and affect the livelihoods of citizens.
