Iranian rial falls past 2 million per dollar as prices for food and medicine surge
The Iranian currency hit a new low on the free market, pushing the cost of basic goods up sharply and deepening hardship for households amid intensified sanctions.
The Iranian rial slipped below 2 million rials to the dollar on the free market after the United States imposed its toughest sanctions to date, further weakening an economy already strained by decades of international restrictions. Al Jazeera’s price monitoring in Tehran shows that the amount that could previously buy 4 kg of tomatoes, half a kilo of chicken and just under a litre of cooking oil now purchases roughly half that quantity. Average prices have risen by 71 % for tomatoes, 74 % for chicken and 177 % for cooking oil.
Medical costs have also surged; insulin prices are reported to be 642 % higher, paracetamol up 93 % and baby formula up 95 % despite government subsidies. A 35-year-old mother of a one-year-old said her weekly grocery bill has risen 20-30 % and that daily childcare costs now total about 5 million rials, a sum she finds difficult to afford.
The government’s minimum wage for the current fiscal year ends in March 2027 at 166 million rials (about $82), rising to less than 220 million rials ($108) with benefits. Retail workers report a 40 % drop in sales compared with the previous year and warn that many small businesses may close before winter ends. One retailer estimated that a typical household spends at least 2 million tomans ($10) daily on coffee, cigarettes, water and transport, excluding groceries and other necessities.
In the southern province of Hormozgan, a fisher who supports a young child said weekly grocery expenses have climbed from roughly 500,000 tomans ($2.5) to 5 million tomans ($25), forcing cuts to meat and chicken consumption. She added that a basic children’s cold medicine now costs about 300,000 tomans ($1.5) and a visit to a general practitioner is around 1 million tomans ($5).
Analysts note that while the conflict has amplified existing economic challenges, the combination of sanctions, disrupted production and a naval blockade has intensified price volatility and reduced purchasing power for millions of Iranians.