Before Protests Erupted, Iran Was Plagued by High Inflation

Waves of anti-government demonstrations have erupted in Iran since late December 2025.

Citing reports from The Associated Press, as of January 12, 2026, these protests have resulted in 544 fatalities.

According to Ray Takeyh, a Middle East studies researcher at the Council on Foreign Relations (CFR) research institution, the large-scale protests in Iran were partly triggered by high inflation.

"Protests have broken out across Tehran and other cities in Iran as inflation spikes and the Iranian currency collapses," said Ray Takeyh in his report, Unpacking Iran’s Protests and Trump’s Threats (3/1/2026).

"With the economy foundering, many Iranians are financially under strain and unhappy with the government’s response, which has led to one of the largest protests movements that the country has seen in several years," he said.

Based on data from the International Monetary Fund (IMF), Iran's inflation surge has been ongoing for years.

In 2016-2017, Iran's average inflation rate was still below 10% (year-on-year/yoy) annually.

However, in 2018—when the United States reimposed economic sanctions on Iran over accusations of terrorism, nuclear development programs, and human rights violations—Iran's inflation rate soared to double-digit percentages.

Since then, the inflation trend in Iran has fluctuated with an upward tendency, projected to reach 42.4% (yoy) in 2025, as shown in the graph.

"So long as Iran remains under sanctions and unable to sell its oil to a wide-range of customers, it is likely to experience such difficulties," said Ray Takeyh.