News ID : 211168
Publish Date : 2/1/2025 8:54:30 PM
Iran: Cheap but low income!

Cost of living in Iran and around the world

Iran: Cheap but low income!

NOURNEWS – Living in Iran is cheaper in terms of expenses compared to developed countries, but high inflation and a declining national currency have reduced purchasing power, causing many people to face financial challenges. While rent, food, and services in Iran appear to be less expensive than in European and American countries, income levels are correspondingly lower.

Living costs in various countries depend on multiple factors, including housing prices, food, transportation, and service costs. In some countries like Switzerland, the United States, and Singapore, these costs are high but proportional to people's income levels. In contrast, countries like Iran, India, and Pakistan have lower costs but also limited purchasing power. Considering the exchange rate of 80,000 tomans (less than one dollar), living expenses in Iran are lower compared to developed countries; however, inflation and the devaluation of the rial mean that many people lack sufficient purchasing power. This note compares living expenses in Iran with various countries and examines the economic situation of Iranian households.

 

Most expensive countries to live in

Based on data from Ranking Royals (2024), Monaco tops the list of the most expensive countries in the world with a living cost of $7,366 per month. Following Monaco are the Cayman Islands ($3,644), Singapore ($3,160), and Switzerland ($2,978). The cost of living in the United States ($2,454) and the United Kingdom ($2,292) is also relatively high. These figures indicate significant financial pressure on households residing in these countries, especially in sectors such as housing and taxes.

 

Comparison of living costs in Iran

Living in Iran presents a dual reality; on one hand, costs are lower compared to developed countries, but on the other hand, this reduction in expenses is accompanied by inflation, economic fluctuations, and decreased purchasing power. Imagine walking down a busy street in Tehran; at one corner, a vendor advertises Iranian rice for $2.39 (200,000 tomans) per kilogram, while on the other side, a butcher displays prices ranging from $7.16 to $9.55 (600,000 to 800,000 tomans) for a kilogram of red meat. While these prices are significantly lower than in Western countries, the income levels are not comparable.

When examining housing costs, the situation appears different. Renting a 70-square-meter apartment in central Tehran can range from $239 to $359 (20 to 30 million tomans) per month. This figure may seem low to a foreigner; however, when considering the average monthly salary, it becomes clear that a large portion of income is spent on rent. In cities like Mashhad or Shiraz, these figures are slightly lower but still consume a significant part of income. In comparison, a similar apartment in London exceeds $2,000 (160 million tomans) and in New York over $2,500 (200 million tomans), yet income levels allow for housing costs to constitute a more reasonable share of household budgets.

 

However, the story of living expenses in Iran extends beyond housing and food. If you wish to spend your day using public transportation, the metro fare in Tehran is about $0.48 (40,000 tomans), while in London this cost surpasses $3 (240,000 tomans). Gasoline prices in Iran are around $0.04 (3,000 tomans), which seems almost free compared to other countries. Yet, this low gas price has led to increased use of personal vehicles, heavy traffic congestion, and air pollution.

Regarding utility costs such as water, electricity, and gas, Iran offers much lower expenses compared to European countries. The average monthly bills for water, electricity, and gas for an Iranian family are less than $12.50 (1 million tomans), whereas in the United States this expense reaches $150 (12 million tomans) and in the UK up to $200 (16 million tomans). Despite these low prices, power outages and gas pressure drops in some areas of the country—especially during winter—pose challenges.

Ultimately, living costs in Iran are lower compared to developed countries; however, income levels and purchasing power have similarly decreased. Although some goods and services are cheaper in Iran, this advantage has diminished due to rising inflation and the declining value of the rial. Many people continue to struggle to meet their daily needs.

At first glance, living expenses in Iran appear lower than in many countries worldwide; however, this situation is coupled with reduced purchasing power, high inflation rates, and low wages. While housing costs, food prices, and energy expenses are less than those in Western nations, Iranian incomes remain substantially lower. In contrast, although European and American countries have higher costs of living, their elevated incomes facilitate a better quality of life.

In conclusion, Iran remains one of the countries with relatively low living costs; however, this benefit has largely been negated by inflation and economic volatility. Therefore, controlling inflation and increasing income levels are crucial for maintaining people's purchasing power.

 


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