Clothing under the wheel of inflation: shifting priorities in Iran

IranFashion and clothing1404 (2025/26)

Examining the trend of clothing's expenditure share with changes in inflation

The relationship between inflation and household consumption is always more complex than can be explained merely in numbers and percentages. The chart of clothing's changes in the household consumption basket shows that this item, more than being a direct function of inflation, is a reflection of shifting priorities and social conditions.

In the years when inflation gradually intensified, clothing first lost its place, and pressure on more essential expenses forced families to limit clothing purchases. But this trend did not last. With the onset of the COVID-19 crisis and the restriction of many cultural activities such as travel, cinema, or collective entertainment, clothing temporarily became one of the few remaining arenas for consumption and social display, and families, despite economic hardship, allocated a larger share of their cultural budget to this category.

This situation, however, did not last long. With the gradual reopening of public spaces and the return of more diverse options for cultural consumption, clothing's share declined again. In fact, clothing's increased role during the crisis was more the result of the elimination or suspension of other cultural sectors than a sign of genuine boom. After the crisis subsided, families again struck a balance among different types of cultural consumption, and clothing returned to a more moderate place.

This trend shows that clothing in the household basket has a kind of "consumption stickiness"; meaning that it cannot be eliminated entirely, but its place changes depending on environmental conditions and access to other cultural goods and services. Under inflationary pressure or social restrictions, clothing's share rises involuntarily, because other options fade. By contrast, in more open and diverse periods, clothing loses part of its priority.

The takeaway from this trend has several messages: first, that in the short run clothing does not react directly to inflation and shifts under the influence of the overall structure of cultural spending. Second, that crises (such as COVID-19) can temporarily boost demand for clothing, because it substitutes for other cultural consumption. Third, that in the long run, clothing's share tends toward equilibrium and a relative decline, even if inflation remains high

See the original infographic (Persian)

Machine-translated from Persian by Namafar; the Persian original is authoritative. Read the original in Persian

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