Regime media expose record food inflation, mass poverty, and growing plans to cut subsidies as experts warn of systemic collapse under political control.
On October 31, Iranian state-affiliated media offered a rare and stark picture of the country’s economic breakdown: food inflation nearing 100 percent, tens of millions living in absolute poverty, and new government plans to cut subsidies from millions more citizens.
Runaway Inflation and the Collapse of Living Standards
According to official figures from the Statistical Center of Iran, food and beverage prices surged to record levels in October. Bread and cereals rose by 98 percent, fruits by 94 percent, and vegetables by 77 percent. The report acknowledged that the poorest households are under unbearable pressure as basic goods become unaffordable.
Hadi Mousavi-Nik, a researcher at the Iranian Parliament’s Research Center, admitted that around 26 million Iranians now live in absolute poverty—well above global averages—and more than four million cannot afford basic daily food.
Subsidy Cuts Amid Deepening Poverty
While inflation and poverty skyrocket, both the regime’s parliament and government are pushing to eliminate subsidies for tens of millions. According to Didar News, the Ministry of Labor has proposed removing 15 million people from the subsidy list, while parliament is pressing to cut as many as 27 million.
Minister of Labor Sowlat Mortazavi stated that although most of Iran’s population cannot be classified as wealthy, his ministry will execute any decision made by the government or parliament to exclude millions from state support.
Even regime-aligned figures criticized the arbitrary reclassification of citizens into higher income brackets. Conservative commentator Mohammad Mohajeri sarcastically remarked that the government should “stop giving subsidies, but at least don’t place us in the same economic tier as billionaires like Babak Zanjani.”
Stagflation and Policy Disorder
Economists describe Iran’s current condition as a “deadly mix” of stagflation and policy incoherence. Growth is negative, industrial output is shrinking, and unemployment continues to climb. The regime faces chronic inflation fueled by massive budget deficits and the lack of an independent central bank.
Economic analyst Mahmoud Jam-Saz warned that the economy has become hostage to politics. “This process not only creates widespread poverty and human suffering,” he said, “but reflects the complete dominance of political will over vital economic variables.”
Policy Contradictions and Misallocation of Wealth
Even as inflation devastates ordinary families—whose poverty line has reached 75 million tomans per month for a family of four—the regime continues to divert resources away from essential needs. Reports indicate that $3 billion has been cut from the subsidy budget, while $2 billion has been allocated to vehicle imports.
Meanwhile, subsidies for school milk have been reduced, and public service costs have increased. Economists view such moves as clear signs of inconsistency and isolation in economic governance. Despite vast national resources, Iranian society is growing poorer and more disillusioned.
An Economy Serving the Ruling Elite
Analysts emphasize that the root of the crisis lies in the political structure itself. Regime policymakers are shielded from inflation because they are among its beneficiaries. “Their tables are full, their accounts overflow with money, and they own multiple properties, gold, and foreign currency,” one analyst noted. “As asset prices rise, so does their wealth. They don’t suffer from inflation—they profit from it.”
This dynamic has created a political economy where the ruling elite gains from instability and the suffering of the population.
A Systemic Breakdown
Iran’s economy today is trapped in a cycle driven by repression, militarization, and regional aggression. As long as political priorities center on internal control and external conflict rather than social welfare and productive investment, inflation will remain unrestrained and poverty will deepen.
Without structural change and the separation of politics from economic management, experts warn that the country is edging closer to full-scale economic collapse.
