Central Bank Governor Hemmati Admits Sanctions Failed as Tehran Food Costs Hit 168 Million Rials

Central Bank Governor Abdolnaser Hemmati stated on October 23 that attempts to isolate the Iranian economy had failed to achieve their primary goal, even as the "heavy burden" on citizens intensified. He made these remarks while acknowledging the severe economic pressure currently facing ordinary households. The admission comes amid a surge in living costs that has forced many families to restructure their basic survival strategies.

The cost of feeding a family of three in Tehran has reached more than 168 million rials, or approximately $61.70. This figure comes from an estimate by the Canada-based fact-checking outlet Factnameh, which calculated the price of a basket containing 11 essential food items in September. The per-person cost for this basket was 56 million rials, or $20.70. These numbers represent a sharp increase compared to the previous year, when the cost of similar meals was nearly half as much.

Households are altering their dietary habits to manage these expenses. A woman in central Tehran reported that her family now reserves most of its meat and chicken for their children, who are still growing. The adults in the household consume legumes and meat substitutes instead. She expressed concern that further price increases could force them to remove meat from the children's diet entirely. The cost of preparing a standard meal of ghormeh sabzi, a traditional herb stew served with rice, now stands at 23 million rials, while potato patties cost about 4 million rials.

The gap between income and expenditure has widened for all income brackets. The government provides a food voucher of 10 million rials, which currently covers less than 18 percent of the per-person food cost. This coverage rate has dropped from approximately 30 percent in December 2025. Annual inflation in Iran reached 89.9 percent in September. The estimated monthly wage for workers is around $100, while the average monthly household income in Tehran is approximately 600 million rials, or $220.

Economic strain extends beyond the average worker to those with higher incomes. A middle-aged man in western Tehran, who earns a total of 1 billion rials per month from his salary and rental income, said he has eliminated savings from his lifestyle. He noted that while he can manage daily expenses, he has no financial cushion for the future. His household income is significantly higher than the national average, yet travel and dining out have disappeared from his routine.

A 28-year-old woman earning 400 million rials a month described changes in her social habits. She and her friends used to visit cafes weekly but now often split one dish between two people to reduce costs. She described sharing food as the primary method to make social outings affordable. Another recently married woman in Tehran said her wedding savings were used for a housing deposit. She now works two shifts to repay a loan and stated that her home has become a place where she only sleeps, noting that she feels poorer each morning.

The economic hardship follows a period of intense geopolitical stress. The United States and Israel launched a war against Iran on February 28, which damaged infrastructure and disrupted trade. A US naval blockade reduced oil exports and imports, while Iranian attacks in the Strait of Hormuz hindered shipping. In August, the US Treasury initiated a new sanctions campaign dubbed "Economic D-Day" to further isolate Tehran financially. These events occurred after a deadly crackdown on protests in January, which were driven largely by the rising cost of living.