Iran's annual inflation rate eases to 87.9%, the first slowdown in three months

Iran's annual inflation rate eased to 87.9% in July 2026, down from 88.6% in June, according to data from the Statistical Center of Iran. It is the first slowdown after three consecutive months of increases, although the level remains very high and reflects persistent price pressure across the economy.

June's 88.6% reading was the highest inflation rate Iran has recorded across the entire data series going back to 1957. Over that period the rate has averaged 17.23%, with a record low of minus 3.27% in April 1958. On that basis the latest figure marks the end of an upward run rather than a return to normal levels.

Within Iran's consumer price basket, housing, water, electricity, gas and other fuels carry the largest weight at 36.1%, followed by food and beverages at 28.8%, transport at 8.9%, health at 6.7%, clothing and footwear at 4.5%, and furnishings, household equipment and routine maintenance at 4.4%. That weighting explains why housing and food prices are the most decisive components of the Iranian household cost of living. Trading Economics projects in its own models that Iran's inflation rate will reach 95% by the end of the current quarter; that figure is a model estimate and not official data.