Iran’s annual inflation rate rose to 88.6% in June, the highest level in recent months, as the Middle East war intensified pressure on an economy already suffering from sanctions and years of hyperinflation.
Iran’s annual inflation rate rose to 88.6% in June, the highest in recent months, as the Middle East war intensified pressure on an economy already suffering from sanctions and years of hyperinflation, according to official data released on Saturday, Agence France-Presse reported.According to the Iranian Statistical Center, inflation rates accelerated sharply during the Persian month of Khordad (May 22-June 21), as food prices doubled compared to the previous year in a country already grappling with rising costs of living.The prices of bread and cereals rose by 138.8% year-on-year, while the prices of milk, cheese and eggs rose by 151.9%. Data showed that the prices of red meat and poultry jumped 178.2 percent.By comparison, the annual inflation rate was 68% in February, before the outbreak of the war launched by the United States and Israel against Iran.Inflation had previously reached 52.6% year-on-year in December 2025, when protests over rising costs of living broke out before expanding into broader political demonstrations.Iran publishes inflation data monthly based on the Persian calendar, according to which each year begins in March.For years, the country’s economy has suffered from the pressures of chronic hyperinflation and a sharp decline in the value of the rial, largely due to international sanctions.
The prolonged rise in prices has steadily eroded household purchasing power, with the economic crisis deepening in recent months and fueling widespread public protests in December.According to official figures, the Middle East war has exacerbated the country’s economic crisis.