Cost of essential goods in Iran increases beyond government estimates

The Statistical Center of Iran recently reported only a 2% increase in the retail price of cooking oil since last year, whereas market data indicate it jumped by 15%. A similar discrepancy also lies in many other core commodities.

The latest government statistics were released in a report on Wednesday called Average Prices of Selected Food Items in Urban Areas - December 2024.

But analysis of 15 household items by Iran International reveals significant differences between market expectations and government statistics.

The price of My Baby diapers has doubled since September and increased by 140% from February 2024.

The report also shows that the price of imported rice increased by about 22% in December 2024 compared to the previous year.

Iran International also found out that a 10-kg bag of Pakistani rice, worth 6.5 million rials ($7.7) in February 2024, is now selling for about 17.5 million rials ($20.8), up almost 170%.

The same pattern appears in meat prices. Lamb has risen by 27% in the past year, according to the official statistics while the 2025 market prices show an 81% year-on-year rise.

Since 2018, when the US re-imposed economic sanctions under the maximum pressure policy, Iranian currency has dropped nearly 20-fold. In the last five months alone, the rial has lost a further 30% of its value.

On Thursday, every US dollar was exchanged for 840,000 rials in the market.

Over one third of Iranians are now living below the poverty line amid the worst economic crisis since the founding of the Islamic Republic.

Since the crisis kicked in back in 2022, it has led to many Iranians bartering for food items.

This week, in a bid to stabilize soaring potato prices, Iran is now importing 50,000 tons of potatoes, according to the country's deputy agricultural minister.

They will be sold at a target price of about 30 US cents per kilogram, less than half of the current market prices, Akbar Fat’hi said on Wednesday.