The economic struggles in Iran are having a profound impact on families, and the situation is only getting more dire. The cost of living is spiraling out of control, and people are feeling the pinch.
Marjan, a resident of Isfahan, Iran's second-largest city, shares her experience: "We used to enjoy dining out twice a month, but now it's a luxury we can no longer afford. We're forced to save every penny just to keep up with the rising rent."
For many Iranian women, like Marjan, selling crafts and keyrings online through platforms like Instagram has been a lifeline. However, the recent government-imposed internet blackout, part of a harsh response to nationwide protests, has left these women without an income source.
Marjan explains, "Even after the internet came back, our sales never recovered. We used to make around $185 a month, but now we're lucky to make a tenth of that."
The economic strain is pushing families to make tough decisions. Marjan and her husband are considering selling their car to pay off loans and keep up with their expenses. "If things don't improve, I'll have to look for a new job, but even that seems unrealistic given the state of the job market."
The protests, which began as a reaction to the soaring cost of living, soon turned into a broader movement against the regime. The economic situation has only worsened since then.
Mina, a 44-year-old mother from Tehran, illustrates the impact of inflation: "Two months ago, beef cost 7 million rials per kilo. Now, it's over 19 million rials - more than double! Iranian rice has also seen a significant price hike, from 1.7 million rials to 3.8 million rials per kilo."
Official data reveals a shocking reality: basic necessities have increased by an average of 60% in the past year, while food prices have doubled. The average family's food basket now costs eight times what it did five years ago and over 30 times what it was in 2016.
Amir, an English teacher from Karaj, adds, "Inflation has become a monthly battle. Prices easily increase by 10% each month. A hamburger that cost 5 million rials in the spring now costs 12 million. It's simply incomprehensible."
The rising food prices have led to a noticeable shift in Iranian diets. Red meat, once a staple, is being replaced by more affordable alternatives like chicken, cheese, and beans. According to the Central Bank of Iran, annual beef and lamb consumption per household has dropped from 64kg in 2004/05 to 32kg in 2024/25.
The rapid devaluation of the rial is a significant factor in these soaring costs. Since May 2018, when the US withdrew from the nuclear deal and reinstated sanctions, the Iranian currency has lost over 95% of its value against the US dollar.
The past year has been particularly turbulent, with the rapid fall in the rial's value sparking protests in Tehran's bazaar, which spread nationwide. The brutal suppression by security forces resulted in thousands of deaths.
Since then, the rial's value has continued to decline, pushing prices even higher. Those with fixed incomes are feeling the impact on their purchasing power.
Sima, a retired senior civil servant, shares her experience: "My income is now six times what it was a decade ago, but in dollars, it's worth a fraction. In 2015, my salary of 50 million rials was roughly $1,500. By 2020, it had risen to 130 million rials, worth around $520. Now, my pension is about 300 million rials, but it's worth less than $200."
The gradual decline in living standards has been a consistent trend over the past two decades. BBC Persian's analysis of official data shows that average annual household expenditure has fallen by a quarter in urban areas and almost halved in rural areas over the past 20 years.
Despite an upward trajectory from 1990 to the mid-2000s, the sanctions imposed on Iran's nuclear program have created a toxic mix of high inflation, low employment, and stagnant GDP growth, resulting in a significant drop in living standards for Iranian families.
The events of the last 12 months have severely exacerbated the situation.
The shadow of war looms large over Iran's economy. Since the 12-day war between Iran and Israel last June, during which the US conducted airstrikes on key Iranian nuclear facilities, the Iranian economy has been in a state of uncertainty. Many believe it's not a matter of "if" but "when" hostilities will resume.
The resumption of talks between Iran and the US in February, with Trump threatening military action, has done little to improve business sentiment. A spokesman for Iran's private sector says, "Investors are focused on survival, not expansion. They're thinking of saving their businesses, not creating jobs."
Farshid Shokrekhodaei, head of investment and financing at the Iran Chamber of Commerce, adds that under these conditions, "capital is flowing into assets like foreign currency and gold, not into productive businesses."
This is on top of other crises affecting businesses and people. Iran faces severe shortages of electricity, natural gas, and water due to underinvestment and poor consumption management.
Factories regularly have their gas supply cut off for days or weeks, and their electricity is cut during warmer months. People in larger cities also endure regular blackouts and water supply disruptions.
However, these problems pale in comparison to the "not war, not peace" situation between Iran and the US, as described by Supreme Leader Ali Khamenei.
Parham, a 26-year-old from Tehran, believes this status quo can't last: "Given the increasing poverty, we're heading towards social instability. People are getting poorer, and the situation is unsustainable."
But here's where it gets controversial... What role do you think external factors, like sanctions, play in Iran's economic struggles? And how can the country find a path towards economic stability and improved living standards for its people? Share your thoughts in the comments!
