The economic struggles in Iran are having a profound impact on families, forcing them to make difficult choices and adapt their lifestyles. The once vibrant and thriving nation is now facing a crisis that is pushing its people to the brink.
Marjan, a resident of Isfahan, Iran's second-largest city, shares her story. She used to enjoy dining out twice a month, but now, those days are a distant memory. The rising costs of living have forced her and her husband to prioritize their spending, with rent taking precedence over leisure activities. Marjan's situation is not unique; she is one of hundreds of thousands of Iranian women who have turned to online platforms like Instagram to earn a living through selling wooden crafts and keyrings. However, the recent government-imposed internet blackout, a response to nationwide protests, has left these women without a source of income.
But here's where it gets controversial... Even after the internet was restored, Marjan's business never fully recovered. Her monthly sales, once a steady 300 million rials, have plummeted to a mere 30 million rials. This drastic decline has pushed Marjan and her husband to consider selling their car to cover their loans and keep up with rent payments.
"If things don't improve, I'll have to find a new job," Marjan says, but even that seems like a distant possibility. The economic downturn has affected almost every industry, leaving few realistic alternatives for those seeking employment.
The protests, initially sparked by the spiraling cost of living, soon evolved into a broader movement against the entire regime. People blamed the government's policies for their increasing financial difficulties, and the economic situation has only worsened since the protests began.
For many Iranians, affording the basic necessities of life has become an uphill battle due to high inflation. Mina, a 44-year-old mother of two in Tehran, illustrates this perfectly. Just two months ago, a kilo of beef cost her 7 million rials; now, it has more than doubled to 19 million rials. The official figures paint a grim picture: basic necessities have increased by an average of 60% in the past year, while food prices have doubled during the same period.
And this is the part most people miss... The cost of an average family's food basket has skyrocketed, currently standing at eight times what it was five years ago and more than 30 times its price in 2016. Inflation has become a monthly reality for Iranians, with prices easily increasing by 10% each month. Amir, a 29-year-old English teacher in Karaj, sums it up: "The numbers are just incomprehensible."
The soaring food prices have led to a noticeable shift in Iranian diets. Red meat, once a staple, is now a luxury for many, replaced by more affordable alternatives like chicken, cheese, or beans. The Central Bank of Iran's figures reveal a stark decline in annual beef and lamb consumption per household, dropping from 64kg in 2004/05 to 32kg in 2024/25.
The rapid devaluation of the rial against the US dollar is a significant factor driving these rising costs. Since May 2018, when the US withdrew from the nuclear deal with Iran and reinstated sanctions, the Iranian currency has lost over 95% of its value on the open market. The past year has been particularly turbulent, with the rial's value continuing to plummet, further exacerbating the inflationary pressures.
Those with fixed incomes, like Sima, a recently retired senior civil servant, have seen their purchasing power erode significantly. Her monthly income, which was once roughly equivalent to $1,500 in 2015, is now worth less than $200. Sima, a 60-year-old Tehran resident, reflects on the changes: "Ten years ago, I could afford to change my mobile phone every two years, sometimes even annually. I could easily buy a brand-new imported car. Now, we can't even upgrade to a slightly better second-hand one."
The gradual decline in living standards has been a persistent issue over the past two decades. BBC Persian's analysis of official data reveals a stark reality: average annual household expenditure has fallen by a quarter in urban areas and almost halved in rural areas over the past 20 years. In simpler terms, Iranians are, on average, much poorer than they were 20 years ago.
This decline is despite a period of growth from 1990 to the mid-2000s. The sanctions imposed on Iran's nuclear program have created a toxic environment, leading to persistently high inflation, low employment, and stagnant GDP growth, all of which have contributed to the deterioration of living standards for Iranian families.
The events of the last 12 months have severely exacerbated the situation. 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 that another outbreak of hostilities is not a matter of "if" but "when."
The resumption of talks between Iran and the US in February, with Trump threatening military action, has done little to improve business sentiment. Investors are focused on survival rather than expansion, and capital is flowing into assets like foreign currency and gold rather than productive businesses.
In addition to these economic challenges, Iran is facing critical shortages of electricity, natural gas, and water due to years of underinvestment and poor consumption management by the government. Factories regularly face gas supply cuts lasting days or even weeks, and in the warmer months, their electricity is cut off. People in larger cities also endure regular blackouts and disruptions to their drinking water supply.
However, all these problems pale in comparison to the ongoing "not war, not peace" situation between Iran and the US, as described by Supreme Leader Ali Khamenei. Many, like Parham, a 26-year-old from Tehran, believe that this status quo cannot continue indefinitely.
"Given the increasing poverty, we're likely to see a wave of social instability," Parham says. The economic struggles in Iran are not just numbers and statistics; they are the stories of real people, like Marjan, Mina, and Sima, whose lives have been profoundly impacted by the country's economic crisis.
