Iran’s rial fell to a new record low on Sunday as the country’s inflation rate climbed to 48% year on year, adding fresh pressure on households already struggling with rising prices and shrinking purchasing power. The drop underscores the severity of the economic crisis facing ordinary Iranians.

The currency slide came as new U.S. sanctions further tightened constraints on Iran’s oil exports, a key source of government revenue. With foreign exchange earnings under pressure, the rial weakened sharply against the dollar, intensifying concerns over the stability of the wider economy.

For many Iranian families, the impact is immediate: imported goods become more expensive, savings lose value, and monthly budgets stretch further beyond reach. Economists warn that persistent inflation and currency volatility can deepen inequality and make basic necessities harder to afford.

The latest downturn reflects a broader pattern of economic strain fueled by sanctions, mismanagement, and long-running structural problems. While officials have tried to project control, the numbers point to a worsening reality for civilians who continue to absorb the cost of the country’s financial instability.