Iran’s 134% food inflation forces households to cut meat and dairy

Iranian households are slashing spending on meat, dairy and coffee as food inflation hit 134 percent nationwide in July 2026, according to the Statistical Center of Iran. Dairy consumption has fallen from 130 kg per person in 2010 to just 40 kg today, said Ali Ehsan Zafari, head of Iran's Dairy Cooperatives Union. Red meat supply dropped to about 623,000 metric tons last year, 20 percent lower than 2024, UN Food and Agriculture Organization data shows.

Year-on-year inflation remains above 80 percent, with the Statistical Center of Iran reporting a 12-month rate of 66 percent for households. The Central Bank of Iran recorded a lower figure of 61.4 percent, but both agencies confirm inflation is rising, NIAC insights noted. Prices for household appliances rose 114 percent and transportation costs climbed 103 percent, Iran International reported on August 5.

The rial has weakened sharply, with one US dollar quoted at 1,862,500 rials on unofficial markets. Economists quoted by Iran International warned that a possible gasoline price increase could push food inflation even higher by raising distribution costs.