Tehran households shrink budgets as prices climb

A newly married woman in Tehran recently found that the funds her family had reserved for a wedding celebration were instead used to secure a housing deposit. She now works two shifts to pay off a loan, and she and her husband spend most of their waking hours at work. She described their home as a place where they simply sleep, noting that every morning they wake up feeling poorer than the day before. She asked that her name be withheld from the report.

Her story mirrors a broader trend across the country as rising living costs force families to rethink their spending on food, housing, travel, and savings. Years of international sanctions, persistent inflation, and the steady decline of the rial have weakened the economy. This hardship played a major role in the protests of January, which were met with a forceful crackdown by authorities.

Economic pressure intensified after the United States and Israel began a war against Iran on February 28. The conflict damaged infrastructure and disrupted trade from both sides. A US naval blockade of Iranian ports sharply cut oil exports and imports of goods, while Iranian attacks aimed at controlling the Strait of Hormuz further hindered shipping. In August, the US Treasury launched a new sanctions campaign labeled Economic D-Day to further isolate Tehran financially.

A field survey by Radio Farda in central Tehran revealed that families are adjusting their shopping priorities and deciding which necessities to forgo. Activities once considered normal for the middle class are being abandoned. The cost of cooking at home highlights this shift. Preparing chicken and barberry now costs nearly double what it did a year ago. A meal of ghormeh sabzi, the national herb stew, served with rice can cost 23 million rials, or about $8.45. Potato patties known as kookoo sib zamini cost roughly 4 million rials.

One woman explained that her family now saves most of its meat and chicken for their children, who are still growing. She and her husband rely on legumes and meat substitutes. They worry that further price increases could eventually force them to remove meat from their children's meals as well.

Factnameh, a Canada-based fact-checking outlet, estimated that a basket of 11 essential food items cost 56 million rials, or $20.70, per person in September. For a family of three, this totals more than 168 million rials, or $61.70. The government's 10 million rial food voucher covered less than 18 percent of the per-person cost, down from about 30 percent in December 2025. Annual inflation hit 89.9 percent in September, while the estimated monthly wage is around $100.

Central bank Governor Abdolnaser Hemmati acknowledged on October 23 that Iranians are bearing a heavy burden. However, he stated that efforts to isolate the country's economy had not achieved their main objective. A retired woman living on a monthly pension of 180 million rials, or $66, has already changed her diet. She cut back on meat and other major protein sources when the Iranian year began in March. She worries about her health but considers herself fortunate because she does not pay rent.

Even those earning above the average are feeling the strain. A middle-aged man in western Tehran said his salary and rental income bring household earnings to a billion rials, or $367. This is well above the average monthly household income in Tehran of around 600 million rials, which is the highest in the country. Despite this, he said he can live for today but has no savings for tomorrow. Travel, dining out, and saving have all disappeared from his life.

A 28-year-old woman in Tehran earning 400 million rials, or $147, a month has also changed how she socializes. She and her friends used to visit cafes weekly, but now they often order one dish for every two people to split the bill. She said that sharing is about the only way to make an outing affordable.