State-affiliated economists say soaring prices, collapsing purchasing power, and structural failures have pushed many Iranian workers beyond inflation and into what they describe as a “survival crisis.”
Two reports published by state-affiliated newspapers on June 2, 2026, reveal growing concern among Iranian economists over the country’s worsening economic conditions. While official figures show inflation already running at some of the highest levels in decades, analysts quoted by the regime’s own media warn that the crisis has evolved beyond rising prices and is increasingly threatening the basic livelihood of millions of Iranians.
According to Jahan-e Sanat, citing data from the Statistical Center of Iran, annual inflation reached 50.6 percent, while point-to-point inflation in April 2026 reached 67 percent compared to April 2025. More strikingly, prices in the goods sector increased by 95.7 percent, while services rose by 39.1 percent over the same period.
The newspaper noted that the real concern among economists is not only the overall inflation rate but the speed at which service-sector prices are rising.
According to the official figures:
Point-to-point inflation (April 2026 vs. April 2025):
- Overall index: 67%
- Goods: 95.7%
- Services: 39.1%
Monthly inflation (April 2026 vs. March 2026):
- Overall index: 7%
- Goods: 9.5%
- Services: 38%
Yet, the real figure, can be much higher, according to independent experts.
The newspaper emphasized that while goods inflation remains higher overall, economists are increasingly alarmed by the 38 percent monthly jump in service inflation, describing it as a figure that cannot be ignored.
“The service price index increased by 38 percent in April compared with the previous month,” the report stated, noting that the costs of haircuts, home repairs, vehicle repairs, doctor visits, restaurants, and similar services rose by more than one-third in a single month.
To illustrate the impact on ordinary households, the report translated the statistics into everyday expenses. A washing-machine repair that cost 400,000 tomans increased to more than 550,000 tomans. At the current market rate of roughly 174,800 tomans per U.S. dollar, those increases represent jumps from about $2.86 to $3.95 and from $2.29 to $3.15, respectively.
The sharpest monthly increases were recorded in the categories of miscellaneous services, transportation, and communications, which rose by 88 percent, 85 percent, and 20.6 percent, respectively. According to the newspaper, any service dependent on transportation, energy, labor, or imported components experienced substantial price increases.
A separate report published by Tosee Irani on the same day focused on the deteriorating condition of workers and low-income households. Economist Farshad Delangizan argued that inflation is no longer the central problem facing many Iranians.
“The worker’s problem is not inflation; it is survival,” he said.
Delangizan argued that many discussions about inflation fail to reflect how working families actually spend their income. While food accounts for only about 28 percent of the official inflation basket of 470 to 480 goods and services, he noted that for many workers nearly all income is spent on food.
“When food prices increase by more than 100 percent, wage increases not only fail to improve purchasing power, they can actually reduce it,” he said.
The economist also highlighted the extent of the hardship facing low-income families.
“If a person wants to consume only dry bread and use the most basic transportation, they must spend at least 100,000 tomans per day.”
That amounts to approximately 3 million tomans per month for one person and 12 million tomans per month for a family of four—roughly $17 and $69 per month, respectively, at the current exchange rate.
He warned: “If these people are not helped and if the government does not define a support basket, we will face a survival crisis.”
Significantly, the newspapers themselves pointed to the roots of the problem. According to Jahan-e Sanat, economists identify three key requirements for controlling inflation: stabilizing the exchange rate, ending government money creation to finance budget deficits, and preventing rent-seeking through greater transparency in the allocation of foreign currency resources. The report explicitly stated that repeated government borrowing from the Central Bank and printing money to cover budget shortfalls continue to fuel inflation.
Taken together, the reports published by Iran’s own state-affiliated media depict an economy struggling under the weight of chronic inflation, currency instability, budget deficits, and declining purchasing power. While officials often attribute economic difficulties solely to sanctions and external pressures, the figures and analysis presented by the regime’s own economists repeatedly point to structural mismanagement, monetary expansion, rent-seeking networks, and failed economic policies as major drivers of the crisis.
For many Iranians, the issue is no longer simply inflation. As one economist quoted by state-affiliated media put it, the question has become one of survival.
The constant warning by the state-run media and officials is due to their fear that the ongoing economic crunch could trigger another uprising like the ones in 2019 and 2026.