Inflation has long been a core challenge of macroeconomic policy in Iran, making the identification of its key drivers highly significant. Among these, crime and security risk, though a non-economic variable, can exert a meaningful influence on inflation by reducing investment, increasing transaction costs, and weakening public confidence. This study aims to examine the impact of crime and security risk on Iran’s inflation rate from 2014 to 2024 using a Structural Vector Autoregression approach. The model’s results indicate that liquidity, exchange rate, and inflation expectations are the most influential factors affecting inflation. Liquidity has the most significant impact, with a coefficient of 0.413, primarily due to its role in increasing demand-side pressures. Both exchange rate fluctuations and inflation expectations also have a direct effect on inflation. In addition to these, crime and security risk, despite a smaller coefficient of 0.083, play a notable role in driving inflation. Such risks contribute to inflation by disrupting economic activity and reducing investor confidence. Impulse response functions show that the impact of this risk is significant in the short term but diminishes over time. Furthermore, variance decomposition analysis reveals that crime and security risk account for approximately 23.9% of inflation fluctuations across different periods.