With the rial in freefall, inflation surging, and sanctions reimposed, Iranian families face unbearable living costs amid regime threats of war.
The Iranian currency suffered a new collapse on Monday, September 29, as the U.S. dollar surged past 112,200 tomans in Tehran’s Ferdowsi market, marking another record high. The rial initially strengthened in early trading due to temporary intervention by the Central Bank but quickly reversed course by midday.
Other major currencies also climbed sharply: the euro reached 131,200 tomans, the British pound 150,300 tomans, the UAE dirham 30,380 tomans, the Turkish lira 2,760 tomans, the Chinese yuan 15,720 tomans, and the Canadian dollar 80,350 tomans.
The gold market mirrored this surge. An Emami gold coin rose to 109.8 million tomans, while a Bahar Azadi coin sold for 103.3 million tomans. Half coins and quarter coins reached 59.5 million and 34.5 million tomans, respectively, and the price of 18-carat gold crossed 10.3 million tomans per gram.
Sanctions and War Fears Fuel Market Panic
The market chaos comes in the wake of the activation of the UN and EU snapback sanctions against Tehran, further isolating the regime economically. At the same time, senior regime officials have warned of potential new military strikes by Israel and the United States, heightening fears and intensifying speculative demand for hard currency and gold.
Shopkeepers in Tehran told Independent Persian that prices of many products had soared in recent days, with some sellers halting sales altogether to avoid losses in a volatile market.
According to economic experts cited by Eghtesad Online, the dollar could climb to 165,000 tomans in the coming months, with inflation on essential goods exceeding 90 percent. The rial has already lost more than 15 percent of its value in just one month, confirming a steep and ongoing downward trend.
The Central Bank has attempted to stabilize the official “NIMA” exchange rate at 69,000 tomans since January 2025. However, the free-market rate has surged by more than 35 percent, widening the gap between official and market rates from 21% to 60%. This has fueled widespread corruption and arbitrage, with economic rents tripling in less than a year.
Families Pushed to Breaking Point
The rapid collapse of the national currency has driven living costs to unprecedented levels. On September 29, the state-run Fararu website warned that “life is no longer possible for an urban family with an income below 50 million tomans per month.”
Yet the government of President Masoud Pezeshkian has refused to increase base wages for workers and public employees, which remain at an average of only 15 to 17 million tomans per month—well below subsistence levels.
Living costs for working families have risen by over 200 percent in the past year, while the minimum family budget requirement has multiplied 2.7 times. Labor activists, have warned that inflation has become “daily,” leaving fixed wages unable to cover even basic needs.
Soaring Prices in Cars, Food, and Daily Goods
Iran’s automobile market also continued its upward spiral. On September 29, domestic vehicles saw an average 7.5 percent price increase in just one day, while imported models rose by 5.2 percent. The base price of a car in Iran has now reached 600 million tomans, with the “Shahin” model surpassing 1.5 billion tomans.
Food prices are also accelerating. Over the past two weeks, meat, poultry, fruits, and legumes have risen between 10 and 30 percent. Tasnim News Agency reported a 27-fold price gap between subsidized and free-market flour, forcing many bakeries to stop using state-subsidized flour and further undermining bread supplies.
Regime Silence and Repression
Despite the spiraling crisis, regime officials remain focused on threats against Israel and the United States instead of addressing the collapse in purchasing power. Meanwhile, the regime’s judiciary has threatened journalists and media outlets with prosecution if they report on the economic consequences of sanctions or the snapback mechanism.
Consumer goods prices between 2016 and 2025 illustrates the devastating impact of regime policies and sanctions. In less than a decade, household staples have soared by 600 to 2,000 percent. For example:
- A bag of chips rose from 1,500 tomans in 2016 to 32,000 tomans in 2025.
- A jar of Nutella climbed from 30,000 tomans to 640,000 tomans.
- A one-liter Coca-Cola went from 1,500 tomans to 78,000 tomans.
- A pack of pasta rose from 1,000 tomans to 41,000 tomans.
- Tomato paste increased from 6,000 tomans to 74,000 tomans.
- Laundry detergent rose from 10,000 tomans to 62,000 tomans.
A Collapsing Economy Under Sanctions and Mismanagement
The currency collapse underscores how the regime’s nuclear adventurism and military policies, coupled with renewed sanctions, have devastated Iran’s economy and driven ordinary citizens into poverty.
While regime leaders beat the drums of war, Iranian families face a stark reality: spiraling costs, collapsing wages, and a future of deepening economic misery.
