In Iran, the annual consumer inflation rate was 87.9% in July, following a historic high of 88.6% in June.
Food prices have seen an annual increase approaching 130% as of July. This economic pressure, worsened by the US-Israeli war, is altering consumer behavior across the country.
Installment payment systems, which were previously reserved for expensive electronics and white goods, are now being used for food and other basic necessities. Companies such as SnappPay and TechnoPay offer deferred payment options for various products, with some retailers allowing basic necessity packages to be split into 4 to 8 installments.
Inflationary impact on food costs in Iran as of July
To manage daily living expenses amidst high inflation and the depreciation of the Iranian riyal, some Iranians are selling personal gold savings. Meanwhile, some restaurants and food businesses are reducing portion sizes instead of increasing prices.
The International Monetary Fund (IMF) expects an average annual increase in consumer prices in Iran of 68.9%. Furthermore, the IMF expects the Iranian economy to contract by 5.4% in 2026.
The Iranian government previously estimated that the cost of the war to the country's economy is approximately 270 billion dollars. In response to rising costs, the government plans to increase food aid specifically for low-income households.
