"Protests broke out over soaring prices in Iran on December 28, 2025 after the rial plunged to a record low against the United States dollar in late December. The protest started with shopkeepers in Tehran's Grand Bazaar who shuttered their shops and began demonstrating. It then spread to other provinces of Iran. On Monday, the rial was trading at more than 1.4 million to $1, a sharp decline from around 700,000 a year earlier in January 2025 and around 900,000 in mid-2025."
"The plummeting currency has triggered steep inflation, with food prices an average of 72 percent higher than last year. Annual inflation is currently around 40 percent. Iran's economy is ailing for several reasons. The country fought a 12-day war with Israel in June 2025, which resulted in infrastructural damage in several Iranian cities. Additionally, in September 2025, the United Nations re-imposed sanctions on Iran over its nuclear programme when the UN Security Council voted against permanently lifting economic sanctions on Iran."
"Officials will now reassess fuel prices every three months, opening the door to further hikes. At the same time, food prices are set to climb after the Central Bank recently scrapped a preferential, subsidised dollar-rial rate for all imports except medicine and wheat. If only the government, instead of just focusing on fuel, could bring down the price of other good"
Nationwide protests erupted on December 28, 2025 after the rial plunged to record lows and food prices surged. Shopkeepers in Tehran's Grand Bazaar led initial demonstrations, which spread to multiple provinces. The rial weakened from around 700,000 per dollar in January 2025 to more than 1.4 million, driving annual inflation near 40 percent and food costs up about 72 percent. Contributing factors include war-related infrastructure damage from a June 2025 conflict with Israel, renewed UN sanctions in September 2025, removal of a subsidised import exchange rate, and a new fuel-subsidy tier that raised gasoline prices and opened quarterly price reviews.
Read at www.aljazeera.com
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