Iran Boosts Food Vouchers as IMF Sees 68.9 Percent Inflation
(MENAFN) Iran is moving to cushion households from the squeeze of US and Western sanctions by restraining inflation and raising food voucher allowances, government spokeswoman Fatemeh Mohajerani said on Monday.
In remarks to a state-run news agency, Mohajerani said inflation stems from wider macroeconomic conditions and cannot be fixed with short-term measures. “We are trying to counter the economic pressure imposed on us by the West and the US by controlling the pace of inflation on the one hand and taking measures to improve people’s livelihoods, including increasing food voucher allowances, on the other,” she said.
Tehran also plans to widen Kalabarg, its electronic food voucher program, which gives eligible households subsidies to buy essential food items.
The push comes as Iran’s economy buckles under US sanctions, a weakening currency and climbing consumer prices. Washington opened a fresh pressure campaign in August, dubbed Operation Economic Outcast, aimed at Iran’s oil exports, financial transactions and access to international markets. In July, the US reinstated its naval blockade on vessels traveling to and from Iranian ports, tightening the squeeze on Tehran’s oil trade.
Central Bank Governor Abdolnaser Hemmati said in August that the country’s oil exports had dropped to zero amid the conflict and sanctions.
The International Monetary Fund forecast in August that Iran’s economy would shrink by 6.1% in 2026, with average annual inflation hitting 68.9%.
The hardship has deepened with the military conflict between Iran and the US, which began in February, and with unresolved disputes over sanctions relief and security arrangements in the Strait of Hormuz.
In remarks to a state-run news agency, Mohajerani said inflation stems from wider macroeconomic conditions and cannot be fixed with short-term measures. “We are trying to counter the economic pressure imposed on us by the West and the US by controlling the pace of inflation on the one hand and taking measures to improve people’s livelihoods, including increasing food voucher allowances, on the other,” she said.
Tehran also plans to widen Kalabarg, its electronic food voucher program, which gives eligible households subsidies to buy essential food items.
The push comes as Iran’s economy buckles under US sanctions, a weakening currency and climbing consumer prices. Washington opened a fresh pressure campaign in August, dubbed Operation Economic Outcast, aimed at Iran’s oil exports, financial transactions and access to international markets. In July, the US reinstated its naval blockade on vessels traveling to and from Iranian ports, tightening the squeeze on Tehran’s oil trade.
Central Bank Governor Abdolnaser Hemmati said in August that the country’s oil exports had dropped to zero amid the conflict and sanctions.
The International Monetary Fund forecast in August that Iran’s economy would shrink by 6.1% in 2026, with average annual inflation hitting 68.9%.
The hardship has deepened with the military conflict between Iran and the US, which began in February, and with unresolved disputes over sanctions relief and security arrangements in the Strait of Hormuz.
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