Iran’s economy has faced multiple crises and mega-crises in recent years. One of the most significant issues is rampant inflation and the declining purchasing power of the people. Meanwhile, official statistics provided by government agencies not only present an unrealistic picture of people’s living conditions but also artificially lower figures to suggest economic stability. How closely do these statistics align with the economic realities of the country? A detailed examination of living costs and inflation rates reveals that the gap between government claims and the real-life conditions of citizens is widening every day.
Living Costs Exceed Official Statistics
According to the latest reports, the Supreme Labor Council’s Wage Committee has estimated the cost of a worker’s livelihood basket at 235 million rials. Meanwhile, the High Council of Trade Unions had estimated the same basket at 290 million rials in December.
A similar discrepancy can be seen in official inflation statistics.
“Iran’s Statistical Center has announced that the monthly inflation rate for February is only 3%! During the same month, the price of potatoes exceeded 200,000 rials, red meat surpassed 2 million rials, and various goods and services saw price hikes of several tens of percent due to the increase in the exchange rate. Yet, according to the Statistical Center’s inflation basket, inflation in February compared to the previous month was only 3%.” (Source: the state-run Bahar News website, February 24).
The same article states:
“During this period, the year-on-year inflation rate of the dollar exceeded 60%. On February 24, the dollar price in the market continued its upward trend, increasing by 1,000 rials from the previous day to reach 937,500 rials. A year earlier, on February 24, 2024, the dollar was priced at 571,900 rials. Therefore, in the past year, the dollar has risen by 63.9%. A nearly 64% increase in the dollar price versus an official 35.3% year-on-year inflation rate—how is that possible?”
This sudden reduction in the estimated cost of living is illogical and reveals the manipulated approach behind official statistics.
Such stark discrepancies show that economic statistics are being used as a tool to cover up existing crises rather than presenting an accurate picture of the country’s economic difficulties.
The Harsh Reality of Iran’s Economy
One of the key indicators in analyzing economic conditions is inflation and currency fluctuations. A review of the dollar exchange rate shows that in February 2025, it reached 937,500 rials, while a year earlier, in February 2024, it was 571,900 rials. The 63.9% increase in the dollar price over the past year has had a direct impact on all goods and services. What is particularly noteworthy is that the government and official institutions continue to portray inflation rates as much lower than reality.
Economists and labor experts have repeatedly pointed out that when the dollar price rises at such a rate, the cost of living cannot have increased by only 35%. The actual increase in living costs exceeds 50–60%, which further confirms the government’s flawed economic policies.
Wages and the Poverty Line: A Growing Gap
According to economic experts and data from state-controlled media, Iran’s poverty line has reached approximately 500 million rials. Meanwhile, the minimum wage set for workers is less than half of this amount, reflecting the severe financial crisis faced by Iran’s working class.
Despite the sharp rise in the cost of living, the highest proposed wage increase stands at 180 million rials, which is still significantly below the poverty line.
“For a working-class family to afford rent, food, healthcare, and education, and for the breadwinner not to tremble in fear of financial ruin due to a simple illness, they must have a minimum monthly income of 400 million rials.” (Ibid)
Given the current policies, the government not only refuses to implement fair wage increases but also distorts statistics to downplay the economic crisis.
Economic Crisis and the Government’s Evasion of Responsibility
In short, Iran’s economy is in a state of crisis, but what worsens the situation is not only the flawed economic policies but also the government’s attempt to conceal the crisis through manipulated statistics.
While many developed countries strive for transparency and effective policymaking during economic downturns to alleviate financial pressures on their citizens, Iran has taken the exact opposite approach.
The discrepancy between wages and real living costs, the manipulation of economic data, and the government’s disregard for people’s financial struggles will only deepen the economic crisis. Unless economic policies are based on reality and public welfare, the gap between income and living costs will continue to widen, placing greater financial strain on the lower-income population.
The increasing presence of various social groups in the streets, demanding their stolen rights and adopting more radical slogans, is the clearest testament to this reality.