Iran reports improved Gini coefficient for year to March 2025
Iran has recorded a drop in income inequality for the year ending late March 2025, according to new figures from the Statistical Center of Iran (SCI).
SCI data cited in a Monday report by Fars news agency indicated that Iran’s Gini coefficient, a widely used measure of household income inequality, fell to 0.3870 in the calendar year 1403, down from 0.3979 the previous year.
The figure marks a notable improvement from year 1397 (2018–2019), when the Gini coefficient reached 0.4093, described at the time as the worst level in decades.
However, it remains above Iran’s best performance in recent years, 0.3650, recorded in 2013–2014.
Officials say income disparity has narrowed despite ongoing economic challenges linked to foreign sanctions.
Some economists attribute the improvement in Gini coefficient to the fact that higher‑income households experienced steeper inflation last year than lower‑income groups. They say prices of food and essential goods, purchased more heavily by lower‑income households, rose less sharply than prices of capital goods and non‑essential items typically consumed by wealthier groups.
Figures from the SCI and the Central Bank of Iran released in recent years show that the country has avoided hyperinflation despite sanctions‑related economic pressures.
The SCI reported last month that Iran's annual inflation had reached 42.2% in the month ending late December.
Iran’s economy has posted positive growth rates since 2021, although forecasts suggest potential contractions in the coming quarters.
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