Tehran, Iran
Tehran’s cost of living is defined by chronic currency devaluation and state subsidies. As of 2025, the rial trades at over 700,000 to the U.S. dollar on the open market, with inflation averaging 40–45% annually. Rent in central Tehran (e.g., north of Valiasr Street) exceeds $1,200/month for a two-bedroom apartment, while a typical monthly grocery basket for a family of three costs ~$350. Subsidized bread, fuel, and utilities keep basic costs low, but imported goods (electronics, vehicles) are 2–3x global averages due to sanctions-driven import restrictions. Expert conclusion: Tehran remains one of the most unequal capitals in the Middle East, where subsidized staples mask a prohibitive real cost for middle-class households reliant on informal currency markets.
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