Iran’s food inflation reaches 128.6% as oils and fats rise 258.2%

Food prices rise faster than the overall index

Iran’s year-on-year food inflation remained at an exceptionally high level in Mordad 1405, intensifying pressure on household budgets. Citing the latest Statistical Center of Iran data, Sarmayeh va Bourse reported that prices in the food subgroup were 128.6% higher than in the same month a year earlier. That was 39.6 percentage points above the 89% year-on-year increase in the overall consumer price index.

The broader food and non-alcoholic beverages group posted annual inflation of 127.5%. On a monthly basis, the overall consumer price index increased 3.4%, compared with 3.9% for food and beverages and 3.6% for the narrower food subgroup. Food accounts for 27.43% of the consumer price index, while food and beverages together represent 28.82%, giving these increases substantial weight in household living costs.

Oils and fats lead annual increases

Oils and fats recorded the largest year-on-year price increase among the principal food categories, at 258.2%. Although this category has a relatively modest 1.26% weight in the consumer basket, its prices were more than three and a half times their level a year earlier. Its monthly inflation was considerably lower at 1.7%, indicating that most of the annual increase had already accumulated before Mordad.

Milk, cheese and eggs followed with annual inflation of 163.7% and monthly inflation of 8.6%. The category has a 2.97% weight in the household basket. Red meat and poultry prices increased 144.6% year on year, while the broader category covering red meat, white meat and processed products rose 141.4%. That broader meat category carries a 6.29% weight, making its increase particularly important for household expenditure.

Bread and cereals, the largest listed food category by index weight at 6.38%, registered annual inflation of 103.9% and a monthly increase of 1.5%. Fruit and dried fruit rose 115.4% year on year and 4% month on month. Fish and shellfish increased 104.3% annually and 6.2% during the month, while sugar, confectionery and sweets recorded respective increases of 102.2% and 2.8%.

Fresh produce drives monthly pressure

Vegetables, greens and pulses posted the largest monthly increase, with prices rising 9.3% in Mordad. Their annual inflation stood at 99.8%, slightly below the 100% threshold, and their weight in the consumer basket was 4.08%. Fresh food prices as a whole rose 5% during the month, compared with 2% for other food products.

Tea, coffee, cocoa and non-alcoholic beverages increased 3.5% month on month and 102.9% year on year. Food products not classified elsewhere rose 5.4% during the month and 105% annually. Red meat and poultry recorded the smallest monthly increase among the major categories, at 1%, while the broader meat and processed-products group rose 1.3%.

The figures show that nearly every principal food category experienced a triple-digit annual price increase. The combination of a 128.6% rise in food prices and food’s large share of the consumer basket points to a severe contraction in household purchasing power. The data do not quantify changes in import volumes or consumption, but the exceptional increase in oils and fats raises the commercial importance of supply availability and procurement costs for processors, distributors and importers serving Iran’s food market.