Iranian Households Shrink Budgets Amid Price Surge

Households in Tehran are abandoning traditional spending habits as the cost of basic necessities climbs out of reach.

A newly married woman who requested anonymity described how her wedding savings were diverted to a housing deposit. She now works two shifts to repay a loan, noting that her home has become merely a place to sleep. She told Radio Farda that she and her husband wake up poorer each morning.

This personal struggle mirrors a national trend where rising costs are reshaping how ordinary Iranians manage their money. Years of sanctions, persistent inflation, and the weakening rial have eroded purchasing power. The economic strain helped fuel the January protests, which were met with a violent crackdown by authorities.

The financial pressure intensified after the United States and Israel began a war against Iran on February 28. The conflict damaged infrastructure and disrupted trade from multiple angles. A US naval blockade reduced oil exports and imports, while Iranian attacks on the Strait of Hormuz hindered shipping. In August, the US Treasury launched a new sanctions campaign labeled "Economic D-Day" to further isolate Tehran's financial sector.

A field survey in central Tehran by Radio Farda shows families altering their shopping lists to prioritize essential goods. Middle-class activities, such as dining out, are becoming rare. The cost of home cooking has doubled in a year. A meal of ghormeh sabzi with rice now costs 23 million rials, or about $8.45, while potato patties cost roughly 4 million rials.

Families are making hard choices about protein intake. One woman reported that her family reserves meat and chicken for their growing children, while adults eat legumes and substitutes. They fear that further price increases will force them to cut meat from the children's diet as well.

Factnameh, a Canada-based fact-checking outlet, calculated that a basket of 11 essential food items costs 56 million rials per person in September. For a family of three, this total reaches over 168 million rials, or $61.70. The government’s 10 million rial food voucher now covers less than 18 percent of this per-person cost, a drop from approximately 30 percent in December 2025. Annual inflation hit 89.9 percent in September, while the average monthly wage remains around $100.

Central Bank Governor Abdolnaser Hemmati acknowledged the "heavy burden" on citizens on October 23. He stated that efforts to isolate the economy had not achieved their primary goal. A retired woman on a monthly pension of 180 million rials has reduced her protein intake since March. She worries about her health but considers herself lucky to be rent-free.

Higher earners are also feeling the pinch. A man in western Tehran with household income of 1 billion rials, well above the 600 million rial average, said he has no savings for the future. He has eliminated travel and dining from his life. A 28-year-old woman earning 400 million rials monthly said she now splits one dish between two people when visiting cafes with friends to afford the bill.

The data indicates a widespread adjustment in consumption patterns across income levels in the capital.