Iran seeks to ease economic pressure from US sanctions through inflation control, food subsidies

Iran is seeking to ease economic pressure from US and Western sanctions by slowing inflation and increasing food voucher allowances for households, government spokeswoman Fatemeh Mohajerani said Monday. Speaking to Iran’s state-run IRNA news agency, Mohajerani said inflation was rooted in broader macroeconomic conditions and could not be addressed through 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. The government is seeking to expand its electronic food voucher program, known as Kalabarg, which provides eligible households with subsidies to purchase essential food items. Iran’s economy has faced mounting pressure from US sanctions, currency depreciation and rising consumer prices. Washington launched a new economic pressure campaign, dubbed Operation Economic Outcast, in August, targeting Iran’s oil exports, financial transactions and access to international markets. The US also restored its naval blockade against vessels traveling to and from Iranian ports in July, further restricting Tehran’s oil trade. Iranian Central Bank Governor Abdolnaser Hemmati said in August that the country’s oil exports had fallen to zero amid the conflict and sanctions. The International Monetary Fund projected in August that Iran’s economy would contract by 6.1% in 2026, with average annual inflation reaching 68.9%. ​​​​​​​The economic difficulties have been compounded by the military conflict between Iran and the US, which began in February, and continuing disagreements over sanctions relief and security arrangements in the Strait of Hormuz.