According to the International Monetary Fund's latest "World Economic Outlook" report, inflation in Iran is projected to hit around 69% this year. If this occurs, it would represent the highest inflation rate in the country since World War II.

As per the report, Iran is set to rank among the countries with the highest inflation globally, behind nations like Venezuela and Sudan, The Caspian Post reports, citing foreign media.

Historical records show that during the occupation of Iran in the 1940s, alongside World War II, inflation in the country had crossed 96%.

The Statistical Center of Iran had earlier reported an annual inflation rate of about 50% for the year ending March 2026, which is now being used as a base for fresh economic assessments. However, month-on-month figures show that point-to-point inflation has already gone beyond 70%.

In another part of the report, the IMF noted that even if tensions ease in the near term, Iran’s economy is still expected to contract by around 6.1% this year. It also projected that Iran’s Gross Domestic Product (GDP), at current prices, could fall to nearly $300 billion in 2026.

IMF estimates further suggest that Iran’s economy is now significantly smaller compared to its regional peers:

Iran’s economy is roughly one-fifth the size of Saudi Arabia and Turkey.It is less than half the size of the UAE and Israel.It is about 20% smaller than Kazakhstan’s economy.

This is a sharp contrast to two decades ago, when Iran’s economy stood on par with Turkey and Saudi Arabia across several major indicators.

In the energy sector, reports indicate that even though the price of Iranian oil has surged in international markets, production levels have dropped. According to OPEC assessments, the price of Iranian oil rose by nearly 86% last month to over $124 per barrel, while daily output fell by around 182,000 barrels.