Iran’s annual inflation rate has reached 66 percent, intensifying living-cost pressures amid international sanctions, regional conflict expenses and currency depreciation, according to a report published on August 18, 2026. The rising costs have further weakened household purchasing power, with lower- and middle-income families facing the greatest strain.

Citing data from Iran’s Statistical Center, the Iranian Labour News Agency said year-on-year inflation in July stood at 87.9 percent. Food and beverage prices rose 128.1 percent over one year, while prices of at least eight essential goods more than doubled during the previous 12 months. Monthly inflation in July was 3.1 percent.

The Iranian rial has fallen to a record low against the US dollar on the unofficial market, adding to the pressure on consumers. The report put a working family’s minimum monthly living costs at about 90 million tomans, compared with a minimum worker wage of about 25 million tomans. Labour rights activist Faramarz Towfiqi said many workers’ monthly income can now cover only eight days of expenses.