Iran Reports 115% Food Inflation as Rial Slides to 1.77 Million per Dollar
Updated
Updated · Al Jazeera English · May 10
Iran Reports 115% Food Inflation as Rial Slides to 1.77 Million per Dollar
12 articles · Updated · Al Jazeera English · May 10
115% food inflation hit Iran in Farvardin, the Statistical Center said, with staple prices surging fastest as war and sanctions deepen pressure on households.
375% jumps in solid vegetable oil, 308% in liquid oil, 209% in imported rice and 191% in chicken far outpaced headline inflation of 73.5% year on year; the central bank put it at 67%.
1.77 million rials bought $1 on Tehran's open market Sunday, versus about 830,000 a year earlier, compounding the squeeze on wages and basic goods.
Less than $10 a month in cash subsidies and e-vouchers has offered limited relief, while authorities ordered governors to reverse cooking-oil price hikes and blamed hoarding, war and an 'enemy' economic campaign.
A 72-day internet shutdown, alongside blockade, sanctions and local mismanagement, is worsening the downturn, with Iran's internet-business guild saying the startup ecosystem is effectively dead.
With Iran's economy shattered by US pressure, why does its military leadership appear more powerful than ever?
How will the Hormuz blockade permanently reshape global access to essential resources like oil and food?
Hyperinflation and Hardship: Iran’s 2026 Economic Crisis and Its Global Ripple Effects
Overview
In May 2026, Iran faces a severe economic crisis marked by extreme currency devaluation, rampant inflation, and a sharp decline in living standards. This crisis is driven by ongoing international sanctions that freeze nearly all oil revenues, impose trade restrictions, and target Iranian banks, leaving the government with limited financial capacity. Recent geopolitical events, including airstrikes on vital infrastructure, have further disrupted oil exports and economic activity. As a result, ordinary Iranians struggle with soaring prices, unreliable basic services, and insufficient government support, highlighting the deepening hardship and instability across the country.