IranRunaway Inflation and Soaring Prices of Essential Goods Have...

Runaway Inflation and Soaring Prices of Essential Goods Have Brought Workers’ Livelihoods to a Dead End

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The state-run ILNA news agency, referring to the sharp rise in Iran’s inflation rate, reported that under current conditions, working-class families need a monthly income of 500 million rials to survive.

On Monday, September 29, ILNA wrote that “while government officials keep preaching frugality to the people and workers, prices are rising weekly and even daily; no law or decree can stop the relentless speed of the inflation train.”

The news agency added that the price of one kilogram of red meat has surpassed 10 million rials (around $10), and a family of four with a monthly income of 200 million rials (around $180) must spend nearly one-quarter of its salary just to afford one kilogram of red meat per person each month.

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ILNA also pointed to the “daily” increase in dairy prices and reported that bread, described as “the simplest item on people’s tables,” had risen by about 95% in September compared to the same period in 2024.

In recent weeks, runaway inflation and the rise in foreign currency exchange rates have fueled concerns over the worsening economic situation in Iran—a trend that has intensified following the activation of the snapback mechanism and the return of UN sanctions.

On September 27, Iran’s Statistics Center announced that the annual inflation rate for September was 37.5%, point-to-point inflation was 45.3%, and the monthly inflation rate was 3.8%.

Experts believe that the announced inflation rates, due to the weighting methods used by the Statistics Center for consumer groups, do not reflect the real market situation, and the actual level of inflation is higher than the official figures.

Criticism of the government’s opposition to raising workers’ wages

ILNA further wrote: “When food items have increased by 57.9% in September and the price of bread has nearly doubled since the beginning of the year, why has the minimum wage of workers, which is supposed to be the sole means of supporting a family, remained fixed and frozen?”

The agency added that the minimum wage for workers, even including benefits, is about 200 million rials, which with an exchange rate of 110,000 rials per dollar equals about $180 per month—equivalent to just one day’s wage in countries where the hourly minimum wage is $20 to $25.

Faramarz Tofighi, a labor activist, in an interview with ILNA, criticized the government of regime president Masoud Pezeshkian for opposing wage increases, saying: “We should no longer talk about point-to-point inflation; we need an index called daily inflation. But why, under these circumstances, are the labor minister and the government talking about a ban on adjusting wages?”

As a result of the Iranian regime’s failed economic, domestic, and foreign policies over the past decades, rising inflation has severely impacted citizens’ lives, especially the low-income classes, while the prices of essential goods have seen unprecedented surges.

Somayeh Golpour, head of the Federation of Labor Associations, warned on September 29 that due to declining purchasing power and wages being far below real inflation, having multiple jobs has become both a “habit and necessity” for most workers.

She pointed to the sharp rise in housing, commuting, children’s education, food, and healthcare costs, adding that currently 60% of workers hold more than one job.

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