The ongoing conflict has exacerbated Iran’s economic crisis, pushing many middle-income families towards poverty. With inflation soaring to nearly 69% and the economy projected to contract by 5.4%, household budgets are under severe strain. Families are now prioritising basic needs, with staples like meat becoming luxuries.
As purchasing power diminishes, the middle class, once considered financially secure, is increasingly vulnerable. Economists estimate that between 3.5 and 4.5 million Iranians have fallen into poverty since the conflict escalated, bringing the total to over 40 million living below the poverty line. This shift is not just a statistic; it represents a profound change in daily life for many families.
The private sector is also feeling the impact, as trade routes shift and uncertainty reigns. Merchants face fluctuating exchange rates and rising costs, making it difficult to sustain their businesses. The collapse of the rial has further complicated the situation, leading to a lack of confidence in the market.
Looking ahead, if inflation continues unchecked and trade conditions do not improve, living standards are likely to deteriorate further. Families may have to cut back on essential expenses like healthcare and education, signalling a long-term decline in quality of life for millions in Iran.
Source: DW News
