The cost of for essential goods and services in Iran have risen by at least 40% over the past four to five months, the Iranian Labour News Agency (ILNA) said in a report, trapping Iranians in a worsening cost of living crisis.
The surge driven by inflation and the removal of government price controls has left families struggling to afford housing, food and utilities under President Masoud Pezeshkian’s administration.
A report published by the ILNA news agency, titled "From electricity to eggs: Everything has become more expensive" described the situation as akin to a "price liberalization bomb that has exploded across all sectors of the economy."
The report referred to sharp increases in electricity and energy bills, meat and eggs, housing, and even luxury goods such as gold and cars. This wave of inflation, ILNA said, has left no corner of the economy untouched.
Iran’s Statistical Center recently reported that urban rental prices rose by approximately 42% in the 12 months leading up to November 2024, compared to the same period the previous year. November alone saw rents climb 3% month-on-month and a whole 40% compared to November 2023.
"Workers across the country can no longer afford to manage their lives, start families, have children, or secure shelter," labor activist Hossein Habibi was cited as saying in an interview with ILNA.
"The crisis has penetrated their very core, and inflation has overwhelmed them."
The price increases extend far beyond housing. Electricity bills, a critical concern as winter approaches, have jumped significantly. At the same time, staple foods such as meat and eggs have become increasingly unaffordable for ordinary Iranians.
Faramarz Tofighi, another labor activist, confirmed that everyday living costs have risen by at least 40% since the Pezeshkian administration took office.
"Price liberalization is advancing at a frightening pace," Tofighi said, pointing to economic policies inherited from the previous government that he said are exacerbating inflation. "From the government and parliament’s statements, it appears that economic officials have raised their hands in surrender. They are openly telling the people that the situation is dire and nothing can be done," he added.
Tofighi emphasized the severity of the current crisis, saying, "This level of inflation is unprecedented in the entire history of Iran." He described the situation as a "collapse of working families into the black hole of livelihood crises."
Government concedes economic missteps
Acknowledging the escalating challenges, President Pezeshkian delivered an assessment in a speech on November 22.
"We have significant imbalances in water, electricity, gas, and the environment—some of which are on the brink of disaster," he said.
Successive governments in the Islamic Republic have repeatedly struggled to address inflation and rising costs. Price-control policies, often implemented as quick fixes, have proven ineffective over the years and incapable of stemming the tide of economic instability.
The human cost of inflation
As inflation tears through Iran’s economy, families are bearing the brunt of the crisis.
The skyrocketing cost of basic necessities has forced many to cut back on essential expenditures, including food and healthcare. The inability to secure affordable housing is driving some into overcrowded or substandard accommodations, compounding the sense of despair.
Labor activists like Habibi and Tofighi warn that the government’s apparent inability to address inflation is eroding public confidence. The rising cost of living, coupled with stagnant wages and dwindling job opportunities, is pushing working-class Iranians to the brink of poverty.
Iran’s inflation crisis, long exacerbated by international sanctions and economic mismanagement, shows no signs of abating. With the cost of living rising sharply across sectors, the Pezeshkian administration now faces mounting pressure to find solutions.
