Many Iranians are struggling to make ends meet as inflation and economic pressures continue to erode living standards across the country.
Marjan, a crafts seller from Isfahan, says she and her husband can no longer afford small luxuries like eating out twice a month. For six years, she earned a living selling wooden crafts on Instagram, but an internet blackout during the nationwide protests in early January wiped out her income. Even after the internet returned, her monthly sales plummeted from 300 million rials ($185) to less than 30 million rials. The couple is considering selling their car just to keep up with rent and loan payments.
Many families face similar hardships. Mina, a 44-year-old mother in Tehran, says food prices have more than doubled in recent months. Beef, which cost 7 million rials per kilo two months ago, recently sold for 19 million rials. Iranian rice has risen from 1.7 million to 3.8 million rials per kilo over the same period. Official figures show that the cost of basic necessities increased by an average of 60% in the past year, while the price of food has doubled. Compared to five years ago, a typical family’s food basket now costs eight times as much, and 30 times more than in 2016.
Young workers also feel the pinch. Amir, a 29-year-old English teacher in Karaj, notes that prices rise by roughly 10% each month. Items once considered affordable, such as hamburgers, have more than doubled in cost. Many households are replacing red meat with cheaper alternatives like chicken, cheese, or beans. Data from the Central Bank of Iran shows that annual per-household consumption of beef and lamb has fallen from 64kg in 2004/05 to 32kg in 2024/25.
Long-term economic pressures are compounded by the collapse of the Iranian rial, which has lost over 95% of its value against the US dollar since Washington withdrew from the nuclear deal in May 2018 and reinstated sanctions. Those with fixed incomes have seen their purchasing power sharply decline. Sima, a retired civil servant in Tehran, explains that although her pension is now six times higher in rials than a decade ago, it is worth far less in dollars.
Over the past 20 years, real household expenditure has fallen by a quarter in urban areas and almost halved in rural regions, leaving most Iranians poorer than they were two decades ago. The combination of sanctions, high inflation, low employment, and minimal GDP growth has driven living standards down, and the past year has worsened the situation.
The shadow of war adds further uncertainty. Since last June’s 12-day conflict with Israel and US airstrikes on Iranian nuclear facilities, the economy remains fragile. Talks of a new nuclear deal, with President Donald Trump threatening military action, have created additional instability. Private sector investors are focusing on preserving assets rather than expanding businesses, with capital flowing into gold and foreign currency instead of productive ventures.
Iran’s infrastructure woes exacerbate daily life. Chronic electricity, natural gas, and water shortages disrupt factories and households alike, highlighting years of underinvestment and poor consumption management. Blackouts and water cuts are now routine, especially in major cities.
Many Iranians, like 26-year-old Parham from Tehran, fear that growing poverty and uncertainty could spark social unrest. “Given that people are getting poorer and poorer, we’re going to see a wave of social instability,” he says, reflecting widespread concern about the country’s economic and political trajectory.
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