Over 40% of Iran's population lives below the absolute poverty line, with that figure exceeding 50% in the capital. Economists warn, however, that the real poverty rate may have climbed above 60%.
Iran’s already dying economy is now being pushed toward full collapse after several weeks of war. Food prices are rising not only day by day but hour by hour, with some staples increasing by at least 50 percent compared to pre-war levels. At the same time, the disruption of internet access has halted many services. Factories and production facilities are facing acute shortages of raw materials, and the country’s administrative system has been severely impaired. “It has become impossible to endure this situation any longer,” a Tehran resident told The Media Line.
According to figures cited by state-affiliated institutions and some economists, more than 40% of the populationnow lives below the absolute poverty line, with that figure exceeding 50% in the capital. Economists warn, however, that the real poverty rate may have climbed above 60% nationwide. As the middle class erodes, the gap between those earning less than 50 million tomans per month (about $320) and those earning more than 200 million tomans per month (about $1,280) has widened sharply. However, across most occupations, the average monthly income of employees and skilled workers in Tehran does not exceed 25 million tomans (about $160), meaning that the majority fall below the poverty line, which economists say would require at least twice that amount to sustain a basic standard of living.
This comes as the Persian New Year period - when Iranian households traditionally increase spending on food, clothing, and social gatherings - typically drives seasonal price spikes. This year, however, those pressures have intensified dramatically under wartime conditions. Last year, 180 Iranian economists issued a statement warning of a looming economic breakdown driven by runaway inflation and monetary policies, particularly exchange-rate mechanisms that grant preferential access and rents to state-linked institutions, including the Islamic Revolutionary Guard Corps (IRGC). (Read More)
