TEHRAN, Iran (AP) — Iranian families face a daily struggle at the grocery store as prices continue climbing sharply. Many citizens share images on social platforms showing their diminished shopping baskets as they battle to afford essential items for their households. This financial burden adds to existing concerns about potential military conflict with the United States and ongoing recovery from recent nationwide demonstrations.
“Everybody is under pressure: merchants, civil servants, laborers,” said Ebrahim Momeni, a 52-year-old retired civil servant. “The weaker class of people is being crushed.”
International sanctions and poor economic management have plagued Iran’s financial system for years.
The country saw temporary improvement following a 2015 nuclear agreement that removed numerous sanctions, but President Donald Trump pulled the United States out of that deal in 2018. After returning to office over a year ago, Trump reinstated his “maximum pressure” strategy, broadening sanctions targeting Iran’s banking system and oil exports. His administration added fresh sanctions Wednesday against 30 individuals and entities allegedly supporting Iran’s missile and drone manufacturing, plus illegal petroleum sales.
This pressure has sped up the collapse of Iran’s national currency, the rial. When the nuclear agreement was established in 2015, the rial exchanged at approximately 32,000 per dollar. By late December, it had fallen to 1.3 million per dollar. Wednesday saw it hit a record low of 1.65 million rials per dollar — worsened by concerns over potential U.S. military action.
Price increases have exceeded 46% compared to January last year. Financial experts caution that the rial’s rapid deterioration could create a destructive pattern of rising costs and diminished buying power. They predict Iran’s economy — already burdened by significant youth unemployment — will face substantial inflation for years ahead.
The currency’s dramatic decline helped spark demonstrations that started in late December at Tehran’s central marketplace before spreading across the nation.
Costs for daily necessities, including food and personal care items, are climbing rapidly.
Momeni reported earning approximately 700 million rial (roughly $540) monthly. Over just the past month, a kilogram of red meat jumped from 13 million rials ($10) to 22 million rials ($17). During the same timeframe, milk prices doubled from 520,000 rials to 1.1 million per liter, while pasta increased from 340,000 to 570,000 rials per box.
“Those with lower incomes and fixed salaries are suffering because of the price hikes,” said Farhad Panahirad, a 44-year-old taxi driver. He and his spouse together earn about 600 million rials monthly, he explained.
Multiple shoppers at Wednesday markets described their strategies for managing increasing financial strain — monitoring social media daily for current pricing information, or shopping during evening hours when some vendors reduce produce prices by half to clear inventory before spoilage.
With fears that U.S. strikes could happen without warning, Iranians are rushing to buy emergency provisions. This includes flashlights, portable gas stoves, and window tape for blast protection, according to a tool shop owner in central Iran who requested anonymity due to retaliation concerns.
Some attempt purchasing large quantities of beans, bread, rice and preserved foods despite elevated costs. “I am not happy to buy this much stuff, but my wife said we had to be prepared for uncertainty in the coming days,” said Saeed Ebrahimi, 43, an electrical technician and father of two.
Even household appliances like washing machines, vacuum cleaners, and refrigerators have seen prices double, Iranian media reports indicate.
Tehran economist Farbod Molavi noted in the independent Dona-e-Eghtesad publication that elevated prices stem from market uncertainty and increased raw material expenses. Iran faces both economic downturn and widespread joblessness, he noted.
Official unemployment reached around 7.8% in October, rising from 7.2% during the same 2024 period, with youth unemployment reaching 20%. Approximately 24 million citizens fall between ages 15 to 34, government data shows.
Recognizing public hardship, the government began distributing monthly payments of 10 million rials in January to roughly 70 million people, representing about 75% of the population, for food purchases. Officials have pledged to boost these payments if prices continue rising.
However, the economic pressure seems set to persist. Trump has warned of strikes against Iran unless it accepts a new agreement limiting its nuclear activities. He has assembled the region’s largest concentration of naval vessels and aircraft in decades. Both nations have completed two negotiation rounds recently, with a third scheduled for Thursday in Geneva.
Panahirad, the taxi driver, expressed doubt that negotiations will help those struggling to afford food. “(Trump) is bullying them, to some extent. After all, he is a superpower and says what he wishes must be done,” he said.
“Wherever you go now people are talking about war. If you go to a bakery to buy bread you see people talking about war,” said Momeni. “This state of limbo is worse than war.”
