However, his economic reforms came at a cost. Critics accused Rafsanjani’s government of fostering economic inequality, encouraging crony capitalism, and enabling corruption among well-connected elites. Inflation soared during his presidency, with a record rate of 49.4 percent, marking one of the worst economic periods for average Iranians. The rising cost of living, coupled with housing shortages and limited job creation, led to growing public discontent.
Political Decline and the Reformist Shift
After stepping down in 1997, Rafsanjani remained an influential figure but began to face increasing criticism. His pragmatic and technocratic style fell out of favor as Iran entered a new phase of political struggle between reformists and conservatives. Mohammad Khatami, a reformist cleric, succeeded him and enjoyed widespread popularity among youth and intellectuals. Rafsanjani, though supportive of some reforms, was viewed by many as part of the old guard.