Iranian Households Abandon Savings and Dining Out as Inflation Hits 90 Percent

The central tension in daily life across Iran is no longer about what people want, but what they can afford. A newly married woman in Tehran described how her family’s wedding fund was redirected to a housing deposit, forcing her to work two shifts to repay a loan. Her home has become a place for sleep rather than living, and she notes that her family feels poorer every single morning. This personal struggle mirrors a national trend where rising costs are pushing households to abandon long-held habits.

The economic pressure has intensified significantly in the past year. Years of international sanctions, persistent inflation, and the declining value of the rial have already weakened the economy. The situation worsened after the United States and Israel launched a war against Iran on February 28, which damaged key infrastructure. Trade routes have been disrupted from both sides, with a US naval blockade reducing oil exports and imports. Additionally, Iranian attempts to control shipping through the Strait of Hormuz have further hindered commerce.

In August, the US Treasury initiated a new sanctions campaign labeled Economic D-Day, aiming to isolate Tehran financially. This external pressure has compounded the internal economic crisis. The hardship became a primary driver for the protests in January, which were met with a deadly crackdown by authorities. Now, the financial squeeze is reshaping how ordinary citizens manage their budgets and daily routines.

A field survey by Radio Farda in central Tehran reveals that families are reordering their priorities. Necessities are being weighed against other expenses, and middle-class activities are being dropped. The cost of cooking at home illustrates this shift clearly. A dish of chicken and barberry now costs nearly double what it did a year ago. A serving of ghormeh sabzi, a traditional herb stew with rice, can cost 23 million rials, which is approximately $8.45. Even potato patties, a common local food, now run about 4 million rials.

Households are making tough choices about protein intake. One woman reported that her family reserves most of the meat and chicken for their children, who are still growing. The adults eat legumes and meat substitutes to stretch their budget. They fear that if prices rise further, they will have to cut meat from the children’s meals as well, a change that would mark a significant drop in living standards.

Data from the fact-checking outlet Factnameh highlights the scale of the food crisis. In September, a basket of 11 essential food items cost 56 million rials, or about $20.70, per person. For a family of three, this totals more than 168 million rials, or $61.70. The government’s food voucher, valued at 10 million rials, covers less than 18 percent of this per-person cost. This is a sharp decline from about 30 percent coverage in December 2025.

Inflation has reached an annual rate of 89.9 percent in September, while the estimated monthly wage hovers around $100. Central bank Governor Abdolnaser Hemati acknowledged on October 23 that Iranians are bearing a heavy burden. However, he stated that efforts to isolate the country’s economy have not yet achieved their main objective, suggesting the struggle may continue.

The strain is felt across all income levels. A retired woman living on a monthly pension of 180 million rials, or $66, has cut back on meat and other proteins since March. She worries about her health but feels fortunate to not pay rent. Meanwhile, a middle-aged man in western Tehran earns a billion rials, or $367, per month, which is well above the Tehran average of 600 million rials. Despite his higher income, he says he can only live for today with no savings for tomorrow, having abandoned travel and dining out entirely.

Even younger professionals are changing their social habits. A 28-year-old woman earning 400 million rials, or $147, a month said she and her friends used to visit cafes weekly. Now, they often order one dish for two people to split the bill. For many, sharing has become the only way to make a social outing affordable, marking a significant shift in how Iranians interact and spend their limited resources.