Tehran: Iranian families are cutting spending on food, housing and other essential needs as rising prices, job losses and the impact of war put increasing pressure on household budgets. Many people are postponing education, moving in with relatives or giving up plans for a better future as their incomes struggle to keep pace with the rising cost of living.
The economic crisis has intensified an already difficult situation in Iran, where years of sanctions, high inflation and a weakening currency have reduced purchasing power. The ongoing conflict and restrictions on trade have added to these problems, leaving many households struggling to meet their daily expenses.
Iran's latest inflation figures show that prices remain under severe pressure. In October, consumer prices were 88.7 per cent higher than in the same month last year, while the annual inflation rate reached 76.8 per cent. Monthly inflation stood at 4.4 per cent, meaning prices continued to rise during the month, even as the year on year rate eased slightly from September.
In September, food and beverage prices had risen by 121.8 per cent compared with the same month a year earlier. Rent increased by 32.8 per cent, while the broader category covering housing, utilities and fuel recorded an increase of nearly 38 per cent. These figures highlight the pressure on families who must pay for food and accommodation while managing transport and other regular expenses.
The gap between earnings and living costs has become a major concern. The estimated monthly cost of living for a three person working class family was about $336, compared with an average monthly wage of around $92 at the free market exchange rate. These estimates illustrate the financial difficulties facing many workers, although actual wages and expenses vary between households.
For some families, the crisis is no longer simply about reducing unnecessary purchases. It is affecting where they live, what their children can afford and whether they can continue their education.
In the northeastern city of Mashhad, Mohammadali, a 47 year old shopkeeper and father of two, described the difficulties facing his family. His experience reflects the pressure on small business owners and parents trying to manage household expenses in an economy weakened by rising prices and reduced purchasing power.
In Isfahan, Mahmoud, a 44 year old government employee, spoke about the challenges of supporting his daughters on his income. His experience highlights the difficulties faced by salaried workers whose earnings have struggled to keep pace with the cost of essential goods.
In Rasht, Hamideh, a 39 year old mother of two, said her family had moved in with her parents after her husband lost his job and their savings ran out. The move illustrates how unemployment and rising expenses can threaten housing security and force families to depend on relatives for support.
Young people are also facing difficulties as they try to build careers and continue their education. In Urmia, Firouzeh, a 23 year old advertising graduate, described the challenges of finding work. In Istanbul, Shahriyar, a 25 year old Iranian student, said financial problems had prevented him from continuing his medical studies in Turkey.
Their experiences highlight concerns about the future of a generation facing limited employment opportunities and growing financial uncertainty. When families can no longer afford education or other long term investments, the effects can extend beyond the immediate crisis.
Iran's labour market was already under pressure before the current conflict. The official unemployment rate stood at 9.1 per cent in spring 2026, an increase of 1.8 percentage points from the previous year. The economic participation rate was 40.7 per cent, while unemployment among people aged 15 to 24 was reported at nearly one quarter.
These figures reflect employment conditions earlier in the year and do not measure the full impact of the conflict through October. However, they show that Iran was already facing significant labour market difficulties before the latest pressures intensified.
The war has disrupted economic activity and trade, while restrictions on Iranian exports have added to the country's financial challenges. A weaker rial makes imported goods and foreign currency expenses more expensive, increasing costs for businesses and consumers. Sanctions and long standing economic weaknesses have also contributed to the crisis, meaning the current hardship cannot be attributed to the war alone.
The government has acknowledged the pressure on households. Economy Minister Ali Madanizadeh apologised over the cost of living difficulties in remarks reported on October 27. President Masoud Pezeshkian has also initiated efforts to address economic pressures, including a proposed package intended to help stabilise prices and support producers.
However, the effectiveness of these measures remains uncertain. There is not yet sufficient evidence to establish that the proposals have brought lasting relief to households or slowed the rise in prices.
The United Nations has also highlighted the human cost of the conflict. In an assessment published on September 29, UN Resident Coordinator Christine Weigand said 30 of Iran's 31 provinces had been affected. Citing national authorities, she reported more than 3,400 civilian deaths and more than 33,000 injuries at that time. She also highlighted damage to infrastructure, rising food prices and lost livelihoods. These figures relate to the situation reported in September and should not be treated as updated totals for October.
For Iranian households, the immediate challenge remains finding enough money to pay for food, rent and other essentials. As prices continue to strain incomes, families are being forced to reconsider plans that once seemed achievable, from university education to independent housing.
The outlook depends on the course of the conflict, the effects of trade restrictions, currency stability and the government's ability to control inflation. Until households experience sustained relief, many are likely to remain focused on meeting their daily needs rather than planning for the future.