Iran raises food subsidies as inflation surges under US sanctions
The government plans to expand the Kalabarg e-voucher program as IMF projects Iran's economy will shrink again in 2026.
Iran is preparing additional food subsidies and trying to curb inflation as economic pressure from US and Western sanctions intensifies. Government spokeswoman Fatemeh Mohajerani said Tehran will expand the Kalabarg electronic food voucher program for eligible households, especially as the prices of basic goods continue to rise. She said inflation stems from macroeconomic problems and cannot be addressed with short-term measures alone. Pressure on Iran's economy comes from the rial's depreciation, restrictions on oil trade, and conflict with the US. ANTARA said IMF projects Iran's economy will contract 6.1 percent in 2026, with annual inflation averaging 68.9 percent, while other reports cite a worse outlook.