The Islamic Republic's Statistical Centre announced on Wednesday, 28 October 2026, that year-on-year inflation reached 88.7% in the Iranian month of Mehr (23 September–22 October). This means Iranian households now pay almost twice as much as in Mehr last year for the same basket of goods and services. Annual inflation — the average of the twelve months to Mehr — was put at 76.8%, and monthly inflation at 4.4%.
The pressure of rising prices is heavier in rural areas. According to the same figures, year-on-year inflation for rural households reached 107% and their annual inflation is 92.3%; for urban households the figure is 74.1%.
Which goods rose the most
The largest price increases compared with Mehr last year were recorded in tobacco, at 163.2%, furniture and household appliances, at 128.9%, and transport, at 128%.
In that single month, the cost of education rose by 23.5%; Mehr is the start of the school year, when families pay school and university fees and the cost of school supplies. Transport prices rose 10.7% in Mehr and the cost of recreation and culture 9.8%.
Rising prices in the shadow of war and blockade
These figures come as Iran's economy bears the weight of the Islamic Republic's war with the United States, the naval blockade of its ports and the halt of a large part of its oil exports. Officials of the same regime have already said that gas and power cuts in winter are certain in several provinces. Medical care has also become unaffordable for many families; according to the association of retirees of Iran Air (Homa), two retired employees of the airline gave up treatment because they could not pay their hospital bills, and died.
The Statistical Centre's figures are the regime's own official numbers. Year-on-year inflation of 88.7% means that a wage that stayed the same over this year has lost nearly half of its purchasing power.
According to the Islamic Republic's Statistical Centre, year-on-year inflation in Mehr 1405 was 88.7%, and 107% in rural areas.
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