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Iran is grappling with a worsening economic crisis marked by skyrocketing inflation, shrinking purchasing power, and widespread labor unrest. With medical costs set to increase up to ninefold, food prices surging, and wages falling far behind inflation, frustration is boiling over, leading to strikes and protests across multiple sectors.
Medical Costs Set to Explode
Farshad Momeni, an Iranian state-affiliated economist, warned that the cost of medical equipment and procedures is expected to rise dramatically next year. According to his estimates:
- The cost of a heart stent procedure will increase from 1.8 million tomans to 16.5 million tomans—a ninefold increase.
- The price of a knee prosthesis will jump from 17 million tomans to 155 million tomans.
- Cataract surgery costs will surge from 700,000 tomans to 6.4 million tomans.
Such drastic increases threaten to make basic medical care inaccessible to millions, pushing more people into poverty and untreated health conditions.
#Iran's Regime Infighting Escalates Amid #Economic Crisis and International Tensionshttps://t.co/QaeyKbnTc7
— NCRI-FAC (@iran_policy) February 19, 2025
Wages Lag Behind Soaring Inflation
Amid these economic struggles, labor unrest is intensifying as workers demand higher wages to keep up with inflation. The High Council of Labor recently proposed a 23.4 million toman living wage benchmark, but workers argue that the real cost of living is at least 29 million tomans.
The government’s proposed minimum wage of 14 million tomans has sparked outrage, as it is far below the poverty line. According to the state-run ILNA news agency, a petition demanding a 70% wage increase has already garnered over 25,000 signatures from workers.
Ali Moqaddasi-Zadeh, head of the Islamic Labor Councils in South Khorasan, warned on February 23: “With a 23 million toman living cost estimate, workers will be forced into slum living and homelessness. Next year will be one of extreme inflation and hardship unless the government takes action.”
The housing crisis further compounds the problem, with 45% of household incomes spent on rent. Workers report that even renting a single room is becoming unaffordable.
#IranProtests Intensify Amid Power Outages and Economic Crisishttps://t.co/RFmfESmKql
— NCRI-FAC (@iran_policy) February 13, 2025
Bread and Basic Food Prices Skyrocket
With inflation accelerating, even staple foods are becoming unaffordable.
- The cost of poultry has forced citizens into long queues to buy affordable chicken in many cities.
- According to Hamshahri Online on February 23, Iran’s food inflation surged to 35.3% in January alone.
- Legumes and vegetables saw the highest price jumps at 16.9%, followed by fruit and nuts (8.7%), and bread and grains (7.4%).
State-controlled media have reported long bread lines in major cities, reminiscent of wartime rationing. Many bakeries have been forced to shut down due to rising flour and ingredient costs.
Government Blames “Enemies” While Economic Hardship Deepens
Despite the crisis, Iranian officials refuse to acknowledge government mismanagement as the root cause. Instead, state media outlets have claimed that “foreign enemies” are using economic hardship to stir unrest.
Ahmad Motahari-Asl, the regime’s Friday prayer leader in Tabriz, attempted to downplay the crisis, claiming: “The enemy is using its vast media network to create the false impression that people are suffering economically.”
At the same time, he urged Iranian youth to flood social media with pro-government propaganda to counteract the negative perception of Iran’s economy.
#Iran Protests:
Widespread Unrest Across Cities Amid #Economic Crisis and Government Neglect on September 22, 2024https://t.co/Zdtr4gfxML— NCRI-FAC (@iran_policy) September 22, 2024
Currency Devaluation Worsens Crisis
Meanwhile, the rising dollar exchange rate, now at 92,310 tomans per USD, has further eroded Iranian purchasing power. According to the ILNA news agency, economist Mohammad Reza Ghorbani stated that the government is the biggest winner of the currency crisis, profiting from converting foreign reserves at inflated exchange rates while citizens struggle under skyrocketing prices.
State-affiliated companies—such as petrochemical and steel industries—also benefit from exports priced in foreign currency, while ordinary Iranians struggle to afford essential goods. Ghorbani warned that the gap between the rich and the poor is expanding rapidly, with working-class families slipping further below the poverty line.
Iran’s economic crisis is spiraling out of control, with workers, retirees, and consumers struggling to survive as inflation eats away at their earnings. Protests are intensifying, yet the regime remains defiant, blaming foreign “enemies” instead of addressing structural economic failures.
With inflation set to worsen in 2025 and public discontent surging, Iran is on the brink of another wave of nationwide unrest, echoing previous anti-regime uprisings. Yet, the regime continues pouring resources into terrorism and regional ambitions, confident in its ability to crush dissent when needed. But no matter how much propaganda it pushes, it knows the people are reaching the point of having nothing left to lose.