The very fabric of daily life in Iran is being strained to its breaking point as the nation grapples with a severe economic downturn. For many families, what was once a comfortable existence is rapidly transforming into a daily struggle for survival, forcing difficult choices and a profound shift in their lifestyles. This isn't just about belt-tightening; it's a fundamental redefinition of what it means to live.
'We used to eat out twice a month,' shares Marjan, a resident of Isfahan, Iran's second-largest city. 'Now, it's simply out of the question. That money is desperately needed for rent.' Marjan, like countless others, had found a way to supplement her income through an online venture, selling handmade wooden crafts and keyrings via Instagram. This digital marketplace had become a lifeline for hundreds of thousands of Iranian women.
But here's where it gets controversial: the government's decision to impose internet blackouts in early January, a response to widespread protests, severed these income streams overnight. Even after the internet was restored, the damage was done. 'Sales plummeted,' Marjan explains. 'What used to bring in 300 million rials (approximately $185 on the open market) monthly has dwindled to less than 30 million rials.' The financial pressure is so immense that she and her husband are contemplating selling their car to cover loans and rent, a stark indicator of their precarious situation. 'If things don't improve,' she adds, 'I'll need to find a new job. The problem is, almost every sector is struggling, so a backup plan isn't easy to come by.'
The protests themselves were ignited by the escalating cost of living, quickly evolving into a broader indictment of the regime, whose policies are widely blamed for the nation's economic woes. The situation has only deteriorated since the demonstrations began.
'Just incomprehensible' is how many describe the current economic reality. The relentless rise in inflation is making even basic necessities a luxury. Mina, a 44-year-old mother of two in Tehran, recounts a shocking price increase for beef: 'Just two months ago, it was 7 million rials per kilo. Yesterday, I paid 19 million rials – more than double!' Similarly, Iranian rice, purchased for 1.7 million rials a kilo in late summer, now costs 3.8 million rials.
Official data paints a grim picture: over the past year, the cost of essential goods has surged by an average of 60%, with food prices doubling. Looking further back, the cost of an average family's food basket is now eight times what it was five years ago and a staggering 30 times more than in 2016.
'Inflation is now a monthly ritual,' says Amir, a 29-year-old English teacher in Karaj. 'Prices jump 10% easily each month.' He illustrates this with a simple hamburger, which cost 5 million rials in the spring and now retails for 12 million rials. The sheer scale of these price hikes is bewildering.
This dramatic increase in food costs is why red meat is increasingly absent from Iranian tables, replaced by more affordable options like chicken, cheese, or beans. Central Bank of Iran figures reveal a sharp decline in beef and lamb consumption per household, from 64kg in 2004/05 to 32kg in 2024/25.
And this is the part most people miss: the ripple effect of inflation is forcing families to make drastic cuts. Mina's family has abandoned branded products and hasn't taken a foreign holiday since 2017. 'Traveling abroad is impossible,' she states. 'Even a domestic trip for our family of four would cost 800 million rials just for flights. Back in 2017, a whole trip to Europe was 200 million rials.'
A primary catalyst for these soaring prices is the precipitous decline in the value of the Iranian rial. Since the US withdrew from the nuclear deal and reimposed sanctions in May 2018, the rial has lost over 95% of its value against the US dollar on the open market.
The past year has been particularly volatile. The rial's sharp devaluation triggered protests in Tehran's bazaar in late December, which quickly spread nationwide. These demonstrations were met with a brutal crackdown by security forces. Since then, the rial's continued slide has further exacerbated price increases.
Individuals on fixed incomes are witnessing their purchasing power erode year after year.
'Worse every year' is the sentiment shared by Sima, a retired civil servant. Her pension, while nominally higher than a decade ago, is worth significantly less in dollar terms. 'In 2015, my 50 million rial salary was about $1,500. By 2020, it rose to 130 million rials, worth around $520. Now, my pension of about 300 million rials is worth less than $200,' she explains. A decade ago, she replaced her mobile phone every two years and could afford a new imported car. Today, even upgrading to a slightly better used car is a challenge.
This gradual decline in living standards has been a persistent trend over the last two decades. BBC Persian's analysis of official data indicates that average annual household expenditure in real terms has fallen by a quarter in urban areas and nearly halved in rural areas over the past 20 years. In essence, Iranians are considerably poorer than they were two decades ago, a stark contrast to the upward trend in living standards observed from 1990 to the mid-2000s.
The sanctions, coupled with persistent high inflation, low employment, and stagnant GDP growth, have created a perfect storm, leading to a significant drop in Iranian families' quality of life. The events of the past year have only intensified these challenges.
The shadow of potential conflict looms large. Since the brief war between Iran and Israel last June, during which the US conducted airstrikes on Iranian nuclear facilities, the Iranian economy has been in a state of anxious anticipation, with many believing renewed hostilities are a matter of 'when,' not 'if.' The resumption of nuclear deal talks in February, under the threat of US military action, has done little to boost business confidence.
'Investors are not focused on expansion or job creation; their sole concern is preserving their existing businesses,' states a representative of Iran's private sector. Farshid Shokrekhodaei, head of investment and financing at the Iran Chamber of Commerce, noted that capital is being diverted towards assets like foreign currency and gold, rather than productive enterprises.
Adding to these economic pressures are ongoing crises in essential services. Iran faces severe shortages of electricity, natural gas, and water due to years of underinvestment in infrastructure and mismanagement of consumption. Factories routinely have their gas supply cut off during winter, and electricity during warmer months. Households endure frequent blackouts and disruptions to their water supply.
However, all these issues are overshadowed by the precarious 'not war, not peace' situation between Iran and the US, as described by Supreme Leader Ali Khamenei. Many, like 26-year-old Parham from Tehran, believe this status quo is unsustainable. 'Given that people are getting poorer and poorer, we're going to see a wave of social instability,' he predicts.
What are your thoughts on how economic hardship can lead to social unrest? Do you believe that external pressures like sanctions are the primary cause of Iran's economic woes, or are internal policies more to blame? Share your perspectives in the comments below.
