Iran’s annual inflation rate rose to 88.6% in June, the highest in recent months, according to official AFP data released on Saturday, as the Middle East war increased pressure on an economy already battling sanctions and years of hyperinflation.Inflation rose sharply during the Persian month of Khordad (May 22-June 21), with food prices more than double from a year earlier in a country already struggling with rising living costs, according to Iran’s statistics center.Bread and cereal prices rose 138.8% year-on-year, while milk, cheese and eggs became costlier by 151.9%. The data showed that prices of red meat and poultry rose by 178.2%.By comparison, annual inflation stood at 68% in February, before the outbreak of the war launched by the United States and Israel against Iran.Inflation previously peaked at 52.6% year-on-year in December 2025, when protests over the rising cost of living erupted before expanding into broader political demonstrations.Iran publishes monthly inflation data based on the Persian calendar, which begins in March each year.Over the years, the country’s economy has been affected by hyperinflation and a sharp depreciation of the rial, mainly due to international sanctions.Prolonged price rises have steadily eroded household purchasing power, deepening the economic crisis in recent months and sparking widespread public protests in December.According to official figures, the Middle East war has further increased the country’s economic crisis.
