Dairy, eggs, and currency instability fuel a new wave of cost-of-living strain across Iran
Iran is facing a renewed surge in food prices as increases in dairy and egg costs converge with ongoing volatility in the foreign exchange market, further eroding household purchasing power.
The price of raw milk has jumped by 52 percent, primarily due to a decline in domestic production. Livestock disease outbreaks and disruptions in the supply of animal feed have significantly reduced output, pushing up input costs for dairy producers. Since raw milk accounts for roughly 60 percent of total dairy production costs, the increase is expected to translate into approximately 30 percent higher prices for consumers. Producers have begun applying these adjustments gradually in an effort to prevent abrupt market shocks, while claiming that higher energy and packaging costs have largely been absorbed to avoid additional pressure on buyers.
Despite assurances that dairy supply remains sufficient, price data indicate a clear upward trend. Full-fat milk, which sold for 34,000 tomans at the beginning of the year, reached 52,000 tomans by early Azar, reflecting the cumulative impact of rising production costs.
Egg prices have followed a similar trajectory. A tray of eggs weighing 1.8 kilograms is now selling for more than 250,000 tomans, exceeding earlier peaks seen in the first half of the year. Packaged 30-egg trays have climbed from 175,000 tomans in Mehr to around 245,000 tomans, placing another essential protein source out of reach for many families.
These food price increases are unfolding alongside heightened instability in the currency market. The US dollar has surged to around 126,750 tomans in the free market, intensifying fears of further inflation. Economic uncertainty, political tensions, and declining public confidence have driven demand for foreign currency and gold, reinforcing a cycle of depreciation and price growth. Analysts warn that mismanagement and inconsistent economic policies have amplified speculation, accelerating the rise in prices even in the absence of structural improvements.
As basic food items become increasingly expensive, the gap between incomes and living costs continues to widen. For millions of Iranians, especially low- and middle-income households, rising food prices are no longer temporary shocks but part of a deepening and persistent cost-of-living crisis.
