Hemmati Admits Heavy Burden As Iranian Inflation Reaches 89.9 Percent

Abdolnaser Hemmati, governor of Iran's central bank, acknowledged on October 23 that Iranian households are carrying a heavy financial burden. He stated this during a period when annual inflation hit 89.9 percent in September. While he argued that international efforts to isolate the country's economy failed to meet their primary goals, the numbers in Tehran tell a different story for ordinary families.

The cost of basic food items has doubled in some cases. A meal of ghormeh sabzi, a traditional herb stew served with rice, now costs 23 million rials, or $8.45. Potato patties known as kookoo sib zamini sell for about 4 million rials. A field survey by Radio Farda in central Tehran showed that making chicken and barberry dishes costs nearly twice as much as it did a year ago. These price jumps force families to choose which necessities to buy and which to skip.

Government support has shrunk relative to rising prices. The state issues a 10 million rial food voucher, worth $3.67. This amount covered less than 18 percent of the per-person cost for a basket of 11 essential food items in September. That share was approximately 30 percent in December 2025. Factnameh, a Canadian-based fact-checking group, calculated that the basket costs 56 million rials, or $20.70, per person. For a family of three, the total is over 168 million rials, or $61.70.

Households are cutting back on savings and dining out to cover these costs. A newly married woman in Tehran said her family used wedding funds for a housing deposit. She works two shifts to repay a loan. She told Radio Farda that her home has become a place for sleeping only, and that she feels poorer each morning. Another woman in the city saves meat and chicken for her growing children while her husband and she eat legumes and meat substitutes.

Even those with higher incomes face tight budgets. A middle-aged man in western Tehran earns 1 billion rials, or $367, per month from salary and rental income. This is well above the average Tehran household income of 600 million rials, or $220. Despite this, he said he can live for today but has no savings for tomorrow. He has stopped traveling and dining out. A 28-year-old woman earning 400 million rials, or $147, per month now splits one dish for every two people when meeting friends at cafes.

A retired woman living on a monthly pension of 180 million rials, or $66, has cut back on protein sources since March. She worries about her health but notes that she does not pay rent. The economic pressure has built since the US and Israel launched a war against Iran on February 28. That conflict damaged infrastructure and disrupted trade. A US naval blockade reduced oil exports and imports, while Iranian attacks on the Strait of Hormuz hindered shipping. The US Treasury began a new sanctions campaign in August, which officials called Economic D-Day.

These financial strains contributed to protests in January that authorities ended with a deadly crackdown. The rial has fallen steadily, weakening the economy further. For many in Tehran, the current reality involves splitting meals and abandoning long-held savings habits to keep up with soaring costs.