Economy
21 Sep 2026

On September 17, First Vice President Mohammad-Reza Aref offered an unusual public admission. Speaking about the gap between incomes and prices, he said the government apologized to the people and was ashamed that the earnings of salaried workers no longer matched their expenses. With inflation potentially exceeding 60 or 70 percent and wages rising about 20 percent, he said, "You cannot live."
Domestic reporting the same week found that food prices had risen between 44 and 293 percent since December, with households cutting back on meat, poultry and dairy.
The strain is visible in production. The Iran Chamber of Commerce purchasing managers' index stood at 46.9 for August, below the 50 mark that separates growth from contraction, while inventories of raw materials fell to 39.3. Businesses cited foreign-currency shortages, customs delays and rising procurement costs.
Fuel shortages add to the pressure. On September 18, as long gasoline queues formed in Birjand, the city's Friday prayer leader told worshippers that the queues "have nothing to do with America and the Zionist regime" and demanded action from domestic officials, according to Tasnim.
When regime insiders reject the government's standard explanation in public, it suggests the official narrative of external blame is losing effectiveness even among loyalists.


