Iranian households face soaring inflation and shortages amid ongoing war with the United States
The eight-month conflict with the United States has driven Iran's inflation to near-90% year-on-year, pushing wages far below living costs and forcing families to cut essential spending.
Iranian families are sharply reducing spending on food, housing and education as the war with the United States pushes inflation to its highest level in decades. Official data show consumer prices in September were almost 90 % higher than a year earlier, with food and beverage costs up 121.8 %.
Economy Minister Ali Madanizadeh said the rising cost of living is hitting pensioners, workers and civil servants hardest. The minimum monthly cost for a three-person working-class household is estimated at $336, while the average monthly wage is about $92 at the free-market exchange rate.
Interviews with residents across the country illustrate the impact. A shopkeeper in Mashhad expressed that his family lacks money and feels fearful of further attacks. A government employee in Isfahan noted that a salary of less than $100 covers only ten days of expenses, forcing him to lie to his children about buying toys or clothing. A mother in Rasht said she moved back with her parents after her husband lost his job and the family could no longer afford rent.
Housing costs have also risen, with September rents 32.8 % higher than a year earlier and utilities and fuel up nearly 38 %. Unemployment climbed to 9.1 % in the spring, and the labour-force participation rate fell to 40.7 %, while roughly a quarter of 15- to 24-year-olds are jobless.
Young adults report difficulty finding work in their fields of study, and the weakening rial has made overseas education unaffordable for many. One student studying medicine in Turkey said he could not pay tuition for the current year and must return home.
U.S. sanctions announced in August as part of “Operation Economic Outcast” have added to import costs and limited access to foreign currency, further straining businesses. Central Bank Governor Abdolnasser Hemmati described U.S. claims of a collapsing Iranian economy as “an illusion.”
The economic downturn poses a political challenge for Iranian authorities, who are wary that deteriorating living standards could trigger renewed public unrest.