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US Sanctions on Iran and Cost of Living Impact in Tehran

Updated on March 10, 2012

I must admit. I was expecting some major spikes in the cost of living differences between average American cities like Austin, TX and Tehran, Iran. The accounts one reads in the media indicate or gives the impression that things are getting serious from the US sanctions imposed for their nuclear bomb program.

This seems to be media spin largely. I suppose to give the impression that sanctions are working for Obama, either that, or, it still is too early for serious problems in Tehran.

The greatest differences I found between living in Tehran, Iran and Austin, TX, was only in a few instances. Overall, basic items are simply cheaper in Tehran! One major difference is average income per month, in Austin, it is $4400, while in Tehran it is $900. Mortgage rates are 5% in Austin\16% in Tehran. Clothing and shoes are all double in Tehran for the same item in Austin. Wine, beer and cars are three times more expensive in Tehran.

Just about everything else is much cheaper by 25-50%. A one bedroom apt, small, rents for $650 vs. $900 in Austin. An international movie, $8 in TX, $3.50 in Tehran. Gas is $2.40 a gallon there, and $3.70 in Austin! Utilities (elec., gas, water) runs $80-100 a month, in Austin, $200. Milk is $1 a liter there, 1.50 a liter here. A loaf of bread is .60 cents there, to $1.50-4 here. For a kilogram of apples, $1.50, versus $3 here.

I think you get the picture and that is the sanctions are either not working yet or at all, or, the Iranian government is subsidizing everything for now. But, I have heard they have stopped this, which if true, it seems the average Iranian is not suffering much yet. Some economic analyst state that Iran's inflation rate is 40% a year.


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