Cost of essential goods in Iran increases beyond government estimates
Prices of essential goods in Iran have increased sharply in recent months, with some food items more than doubling, while official government statistics report only a 2% rise.
Prices of essential goods in Iran have increased sharply in recent months, with some food items more than doubling, while official government statistics report only a 2% rise.
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.
The Swedish TV channel, TV4 Nyheterna, reported on Tuesday that Rouzbeh Parsi, the head of the Middle East program at the Swedish Institute of International Affairs (UI), communicated with authorities in Tehran who actively sought to amplify official Iranian foreign policy talking points in Western policy circles.
The discussions, TV4 reported, aimed to shape Western perceptions of Iran during critical nuclear negotiations.
TV4 said Parsi had held meetings with Iranian diplomats, including former Foreign Minister Javad Zarif, and worked alongside senior figures who were closely affiliated with the IRGC.
In 2023, a joint investigative report by Iran International and Semafor combed through thousands of emails from Iranian diplomats, revealing a network of academics and think tank analysts cultivated by Iran's foreign ministry to extend Tehran's soft power.
Members of the grouping, called the Iran Experts Initiative (IEI), were guided by Iran's Foreign Ministry in their public writing and media appearances. They were key voices in Western think tanks and policy institutions helping promote Iran's stances.
Parsi, listed in the leaked emails as an IEI member, attended its inaugural meeting in May 2014 at Vienna’s Palais Coburg hotel, coinciding with nuclear talks. Documents indicate that Iran’s foreign ministry covered the event’s costs.
While Parsi acknowledges his participation, he denies collaborating with Tehran.
“My purpose was to observe how Iranian officials reason and act in real-time,” he told TV4.
The leaked emails revealed that IEI members, including prominent Iranian-American scholars like Ali Vaez and Ariane Tabatabai, published articles supporting official Iranian positions.
In a 2015 email to Iranian officials, Khatibzadeh, a senior Iranian diplomat who helped mastermind the IEI, referred to participants as “our friends” and shared links to their work which aligned with Iran’s narrative on nuclear negotiations.
Khatibzadeh was appointed on Saturday as the head of the foreign ministry's think tank, the Institute for Political and International Studies (IPIS).
The IEI’s activities have drawn scrutiny, particularly regarding figures like Tabatabai, who held senior positions within the US Department of Defense.
Human rights activists have in recent days expressed concern about the impact of the 90-day pause in foreign aid on Iran-related programs, with some saying the order could help Tehran further restrict its people’s access to information.
It has been more than two decades that the United States has been supported civil society and human rights in Iran on everything from documenting abuses by the country's rulers - Washington's Mideast arch enemy - to supporting efforts to transcend official internet censorship there.
Following Trump's executive order, Secretary of State Marco Rubio issued a directive to US embassies worldwide to halt all financial disbursements, except for critical emergency food programs including efforts to combat a widening famine in Sudan.
The audit aims to gauge the efficiency of foreign aid programs and their alignment with Trump's America First policy stance.
"We are merely looking at parts of the big bureaucracy where it has been tremendous waste and fraud and abuse," Trump said on Wednesday.
Outside the Senate floor, where an unprecedented number of reporters gathered in what many are dubbing the Trump effect amid intense interest in his barrage of early policy moves, lawmakers shared both support and scorn for the policy.
Senator John Fetterman set a light-hearted tone with reporters, saying Trump may not ultimately achieve all he wants. “I wish with an executive order I could get a beautiful head of hair,” in a nod to his signature bald look.
On a more serious note, the maverick Pennsylvania Democrat who has cultivated a working-class persona and has been more amenable to Republican policies than most of his peers, acknowledged concerns but took a measured approach.
“This is what (Trump) was running on. Obviously, there are things about this we need to be concerned about, but I’m not gonna freak out—and I know those freak-outs are gonna keep you guys in business,” he told congressional reporters.
Senator Mark Kelly, an Arizona Democrat known for his outspoken criticism of Trump, slammed the executive order.
“This is a power grab. This is trying to take away our lawful authority to appropriate money and put it into the White House. I think this is trying to take power from one branch of the government and put it into the Oval Office,” Kelly said.
Senators Ted Cruz and Josh Hawley, both closely aligned with Trump, expressed full support for the funding pause. Cruz described the move as necessary to review what he called “politicized and misguided spending” under the Joe Biden administration.
“I think it’s perfectly reasonable for the incoming administration to assess where the money is going," Cruz, a Texas Republican, said. "I put out a report from the Commerce Committee on extreme DEI and politicized funding at the National Science Foundation—woke grants that abuse statutory intent. I’m glad the Trump administration is examining the money before it goes out the door.”
Hawley, a Missouri Republican, expressed faith in Rubio’s pending review. “What Secretary Rubio is doing will allow him a top-to-bottom review of the fundings and what he wants to do with them. I look forward to seeing what Rubio finds. I think he’ll come forward with recommendations."
The funding freeze sending shockwaves beyond Capitol Hill. A senior manager from a nonprofit organization impacted by the freeze who requested anonymity due to internal media restrictions, expressed deep concerns.
“All programs are suspended. It will get people killed and networks exposed,” the manager said, referring to Iran-related initiatives previously funded by the State Department’s Near Eastern Affairs office, which allocated nearly $60 million annually to such projects.
As the 90-day review period unfolds, the political and humanitarian fallout of the freeze will continue to be closely watched, with Rubio’s findings and recommendations likely to shape future debates.
