Iran is grappling with an escalating cost-of-living crisis that has left basic food staples increasingly out of reach for ordinary citizens, according to a new analysis published by the Center for Strategic and International Studies (CSIS).
The report, part of CSIS's "Charting the Middle East" series and authored by Lilya Yatim, draws on data from the World Food Programme (WFP) showing that the price of wheat flour in Iran rose by 124 percent in May compared to November 2025 — the period just before a sharp depreciation of the rial triggered widespread protests across the country. Prices for beef, chicken and cooking oil have also climbed sharply over the same period, according to the WFP figures cited by CSIS.
The scale of the economic damage became fully visible only after May 26, when Iranian authorities lifted a three-month internet blackout imposed during the war with the United States and Israel. According to CSIS, the shutdown had obscured the extent of the country's economic deterioration, which stemmed both from the conflict itself and from the historic currency collapse that preceded it.
Tehran has attempted to respond to the crisis by establishing a so-called "resistance economy committee" tasked with cracking down on price gouging and addressing shortages. Despite these measures, CSIS notes that hyperinflation and scarcity have persisted, forcing Iranians to wait in long lines for government-subsidized bread and to cut back on meat and dairy consumption.
The outlook offers little relief. CSIS cites International Monetary Fund (IMF) projections estimating that Iran's inflation rate will reach 68.9 percent in 2026 — the highest level recorded since the 1979 Islamic Revolution. The combination of soaring inflation, currency depreciation, rising costs and continued economic sanctions, CSIS warns, risks deepening food insecurity and broader humanitarian strain, posing a significant challenge for the Iranian government once the war subsides.
Illustration: Gemini