The annual (point-to-point) inflation rate in Iran eased slightly to 38.7% in May 2025 (Ordibehesht), down from 38.9% in April, which had marked the highest level since December 2023 (Azar).

The slowdown was mainly driven by softer price increases in food and non-alcoholic beverages (41.5% vs 42.7%) and housing, utilities, and fuels (37.4% vs 37.8%).

However, inflation accelerated in several categories, including transport (30.6% vs 29.3%), health (45.2% vs 40.8%), clothing and footwear (33.9% vs 33.3%), and household furnishings and equipment (37.5% vs 36%).

On a monthly basis, consumer prices rose by 2.7%, easing from a 3.9% gain in the prior month.