Iran's 134% food inflation: Dairy, meat vanish from household budgets

Coffee consumption is also becoming an unaffordable luxury. Although global coffee prices declined, the cost of coffee beans in Iran – largely imported through the United Arab Emirates before the war – has nearly doubled compared to pre-war levels. An Americano at cafes reviewed by Iran International started at about 1.1 million rials ($0.59) and reached roughly 3.8 million rials ($2.04). Two drinks and a slice of cake for two people now cost about 12 million rials ($6.45), one cafe customer said.

Beyond food, household appliances cost 114% more than a year ago, and transportation costs climbed 103%, the SCI reported. Oils and fats rose about 278% in June.

The war with the United States has compounded existing inflationary pressures. Employment fell approximately 450,000 year-on-year to 24.67 million, unemployment rose to 2.5 million, and 1.3 million full-time jobs vanished, NIAC Insights reported. Industry lost roughly 629,000 jobs.

Gholamhossein Mohammadi, a deputy labour minister, said in April 2026 that the war had, by preliminary estimate, directly destroyed more than one million jobs and left roughly two million people unemployed once indirect effects were counted.

The 87.9% point-to-point inflation rate meant the average household paid roughly 88% more for the same basket of goods and services it bought a year ago. In rural areas, food inflation hit 140%.

Economists warned that a possible gasoline price increase could push food inflation even higher by raising distribution and delivery costs, Iran International reported. The figures reflect declining purchasing power and weaker job security, they said.

Miad Maleki, a former US Treasury official and sanctions strategist, told Eye for Iran that the greater danger to the regime may emerge once the fighting stops and it must govern a country burdened by soaring inflation, reconstruction costs and years of economic decline.

"The salary might keep coming," he said. "You just won't be able to afford very basic needs."