Official data reveal sharp inflation spikes following the removal of subsidized currency, with food prices bearing the heaviest burden
State Media Acknowledge Unprecedented Inflation Surge
Iran’s state-affiliated news agency Khabar Online acknowledged on Monday, January 26, 2026, that the country has recorded one of its most severe inflation spikes in recent history. Citing official data from the Statistical Center of Iran, the report admitted that the consequences of the government’s so-called “currency shock” and the removal of subsidized exchange rates have directly impacted household living standards.
The figures reflect the first full month of the policy’s implementation in January 2026, revealing a sharp deterioration in purchasing power, particularly for basic food items.
Monthly and Point-to-Point Inflation Reach Alarming Levels
According to the official data, monthly inflation reached nearly 8 percent in January 2026. The situation was even more severe in the category of food, beverages, and tobacco, where monthly inflation surged to 13.8 percent, setting a new record.
Point-to-point inflation—which compares prices to the same month a year earlier—jumped to 60 percent in a single month. Food prices accounted for the largest share of this increase, confirming that the inflationary shock has disproportionately affected essential goods.
Food Inflation Nears 90 Percent
The Statistical Center of Iran reported that point-to-point inflation for food items climbed to 89.9 percent, up from just over 72 percent in December 2025. This represents an increase of approximately 17 percentage points in only one month, directly linked to the removal of preferential currency allocations.
Annual inflation also rose sharply, increasing by 2.4 percentage points to reach 44.6 percent, further entrenching the cost-of-living crisis.
Triple-Digit Inflation in Basic Staples
In a striking admission, official sources confirmed that inflation for several essential food items has entered triple-digit territory:
- Bread and grains: 133.6 percent
- Oils and fats: 116.9 percent
- Fruit: 118.7 percent
Other staples also experienced dramatic price increases. Inflation for milk, cheese, and eggs reached 87.2 percent, while red meat and poultry prices rose by 80.6 percent.
Household Food Costs Effectively Double
Taken together, the official statistics indicate that the removal of subsidized currency has, in its very first phase, effectively doubled the cost of basic food consumption for Iranian households. This acknowledgment by regime-affiliated media underscores the depth of the livelihood crisis triggered by government economic policies.
The data provide rare confirmation from within official channels of the scale of economic hardship facing millions of Iranians, as inflation continues to erode incomes and access to essential goods.
