Iran’s currency slid to a fresh record low on Sunday, underscoring the depth of the country’s economic crisis as inflation climbed above 45%, according to traders and state media reports. The latest drop in the rial adds more pressure on households already struggling with rising prices and shrinking purchasing power.

The currency’s decline reflects broader strain in an economy hit by sanctions, policy mismanagement, and persistent inflation. For many ordinary Iranians, the weaker rial means higher costs for imported goods, basic food items, and other essentials that have become increasingly difficult to afford.

State media and market traders said the currency continued to lose value as confidence in the economic outlook weakened further. The new low marks another blow to families and businesses trying to navigate unstable prices and a volatile exchange market.

The worsening currency slump is the latest sign of how economic instability continues to erode living standards in Iran, where workers and low-income households have faced years of rising costs and declining wages.