The persistent and runaway inflation, which has frequently reached hyperinflationary levels, acts as a cruel tax on the poor and the fixed-income earners. Driven by structural budget deficits, the reliance on printing money, and the impact of sanctions on imports and the national currency, the rial's value has collapsed repeatedly. The wealthy, who typically hold their assets in stable foreign currencies, real estate, or hard assets, are insulated from this decay, while the savings and real wages of the common person are constantly eroded, plunging more middle-class families into de facto poverty.
