Iran, Islamic Republic of Consumer Price Index

Iran’s Consumer Price Index reached 3,243.09 in 2025, marking its highest level in a 66-year time series that began at 0.14 in 1960. This sharp escalation reflects decades of persistent inflationary pressures, driven by structural economic imbalances, currency depreciation, and the impact of international sanctions. The 2025 reading places Iran fifth globally in terms of CPI, below Zimbabwe’s 17,406.91 and Lebanon’s 9,043.98 but well above peer Türkiye at 1,447.32. The trajectory since 1960 underscores a prolonged erosion of purchasing power, with inflation intensifying notably after the 1979 revolution and during periods of geopolitical tension. Unlike some peers that have experienced hyperinflation followed by stabilization or reform, Iran has yet to implement consistent monetary discipline or fiscal reforms capable of anchoring price stability. The gap between official data and public perception of inflation also raises questions about measurement accuracy. Absent structural reforms, greater central bank independence, and improved macroeconomic governance, the current upward trend in consumer prices is likely to persist, further constraining household welfare and long-term growth prospects.