The exchange rate of the U.S. dollar in Iran’s free market surged by more than 13,500 rials on Thursday, February 20, reaching 941,000 rials. Meanwhile, Iran’s Statistical Center reports that monthly inflation in February has broken a two-year record.
The value of the U.S. dollar against the Iranian rial has increased by five percent over the past week, more than 15 percent in the past month, and nearly 70 percent in the past year. This trend, coupled with the expansion of liquidity, has led to rampant inflation in the country.
The price of various gold coins also jumped between 1.5 percent and over three percent on Thursday compared to Wednesday.
On the same day, Iran’s Statistical Center released a report indicating that the price of goods and services in February (corresponding to the Iranian month of Bahman) increased by 4.1 percent compared to January. This marks the highest monthly inflation rate in the past two years.
However, inflation in food items has been significantly higher than other goods and services, reaching 6.7 percent.
The year-on-year increase in the price of goods and services in February (point-to-point inflation) has been reported at over 35 percent, with food items experiencing a higher rate of inflation compared to other goods and services.
However, field reports from Iranian media suggest that the actual inflation rate is significantly higher than the figures provided by the Statistical Center.
For example, Iranian media have reported an 83 percent surge in the price of rice in February 2025 compared to September 2024. However, the Statistical Center claims that the highest monthly inflation rate was recorded in vegetables and legumes at approximately 17 percent, while other food items saw lower price increases.
In recent years, Iran has faced rampant inflation, with household purchasing power shrinking each year. According to the International Monetary Fund (IMF), Iran is once again among the ten countries with the highest inflation rates in the world.
Amid this crisis, Iran’s Statistical Center reports that 27 percent of Iranians live on a daily income of just two dollars, meaning that one-third of the population cannot afford basic living necessities. Additionally, the Global Hunger Index (GHI) indicates that 6.5 percent of Iran’s population suffers from malnutrition.
Masoud Pezeshkian, the president of the Iranian regime, has failed to curb the rising exchange rate in the free market despite his promises. Moreover, the exchange rate in the NIMA system (the official foreign exchange market) has also soared, and from next year, the allocation of preferential foreign currency for essential goods will be discontinued.
