Author: Kanishka Birat

Rice at Rs 470 per kilogram (kg.) Potatoes at Rs 47 a kg. These are not the prices of food items in India, but, in the Khamekei-ruled Iran where thousands of protestors are crying foul on the streets over rising prices of food items and daily used items. People of the Islamic Republic of Iran are baffled by the skyrocketing prices of food items. Thursday marks the 12 day of protests.

Albeit, the government of Iran has announced a stimulus package of $7 a month for the citizens, but, that seems to be meagre!

Supporters of the Iranian opposition group, the National Council of Resistance of Iran, protest near Iran’s embassy to demand an immediate stop to the violence against protesters in Iran and an end to detentions and repression, in Berlin, Germany, January 3, 2026. REUTERS/Axel Schmidt

Lets have a look at how daredevil inflation has become for average Iranians!

The prices of everyday goods significantly impact people’s lives. These directly impact middle man’s pockets. Here’s a snapshot of some key commodity prices in Iran:

Rice: Iranian rice prices have seen substantial increases. In December 2025, Iranian rice cost about $5.23 per kilogram, a 164% increase compared to the previous year. In rupee terms, the price of the kharif crop has reached Rs 470 per kg. While, you will be shocked to know that in terms of Iranian currency, the rate of one kg of rice has reached 2.20 lakh rial per kg.

Just imagine! What is the situation of poor people in the Khamenei ruled nation.

Prices fluctuate daily and have risen sharply. For example, lemons were about $3.56 per kilogram in late 2025, a 272% increase year-on-year. In rupee terms, the price of lemons has shot to Rs 320 per kg. While, in terms of Iranian currency, the rate of one kg of lemon has reached nearly Rs 1.50 lakh rial per kg.

Inflation, which is the rate at which prices for goods and services are rising, has been a significant issue in the Persian speaking nation.

Goods and services are becoming considerably more expensive for the average Iranian. Inflation continues to remain a primary concern.

Iran’s inflation has continuously risen in last 10 months

High inflation has troubled the Iranians since long. The rate of rise in prices of commodities has continuously gone up in the last 10 months. As per the country’s central bank, Bank Markazi, December 2025 inflation print came in at 42.4%.

According to a BBC report, the food inflation has galloped to 70% and prices of basic commodities have more than doubled in last one year.

Currency collapses!

Because of the government’s mismanagement, the demestic currency, Iranian rial, has crashed 80% against the US dollar in last one year. Currently, the exchange rate stood at $1 = 1.47 million rial.

Falling GDP!

No doubt, the Khamenei-ruled country’s Gross Domestic Product (GDP) growth rate has only fallen in last few years. According to the International Monetary Fund (IMF), the nation’s economy will only expand at the meagre rate of 0.6% in 2025. The metric had fallen to 3.7% in 2024 from 5.3% in 2023. GDP has only grown by lull single digits and inflation in double digits in last few years!

Rising unemployment!

And with falling GDP and rising inflation, how could the country be left behind in mismanagement of employment. According to IMF, the unemployment rate rose to 9.20% in 2025 from 7.55% in 2024. In pre-Covid era, it had galloped to more than 12%.

Published Date: January 8, 2026