Iran is experiencing a sharp rise in living costs after January's protests and almost five months of conflict, state media report. IRIB cites a 66% year-on-year jump in consumer prices, while Tasnim highlights soaring medical bills and overcrowded hospitals. The World Bank noted inflation averaged about 40% over two years, with food inflation at 99% in February 2026. Experts warn that airstrikes, internet blackouts and business closures have further strained households and economic activity.
Cost Of Living Skyrockets In Iran Amid Protests, Sanctions And Months Of Conflict
FILE-PHOTO - People go about their daily lives at an open-air market in Tehran. (is associated with: «Cost of living soars in Iran after months of war») Arne Immanuel Bänsch/dpa
The cost of living in Iran has surged dramatically after nationwide protests in January and nearly five months of conflict, state media and international reports say.
State broadcaster IRIB reported that consumer prices rose by 66% year-on-year. The semi-official Tasnim news agency added that medical fees have climbed sharply, hospitals are overcrowded and long queues are forming outside specialist outpatient clinics.
Economic Strain and Causes
Mass demonstrations began in January over a deepening economic crisis that international sanctions have exacerbated. Authorities moved to suppress the protests. Since late February, the conflict has widened: Iranian officials and state media report that US and Israeli airstrikes have damaged key industrial facilities across the country. Internet shutdowns and widespread business closures during the fighting have further reduced economic activity.
Inflation And Food Prices
The World Bank said in an April report that Iran's annual inflation averaged about 40% over the previous two years. Food inflation has been especially severe: annual food inflation reached 99% in February 2026, the report said.
Households face a triple squeeze: rising prices, limited economic opportunities and shortages of essentials.
Analysts warn that continuing conflict, sanctions and disruptions to industry and trade could deepen the humanitarian and economic toll unless stabilizing measures are enacted.
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