Shafaq News– Baghdad

Wide price disparities for basic goods have become a defining feature of Baghdad’s markets, with identical products selling at sharply different prices depending on location.

Across the capital’s Al-Karkh and Al-Rusafa districts, the same goods can vary dramatically in cost from one neighborhood to another. In the upscale Mansour area, for example, one kilogram of fish sells for about 20,000 Iraqi dinars (approximately $15). In districts such as Al-Bayaa, the price drops to around 10,000 dinars, while on Baghdad’s outskirts it can fall as low as 5,000 dinars.

Economist Ali Daddoush told Shafaq News on Tuesday that these disparities are largely driven by differences in household income and operating costs. Neighborhoods such as Mansour and Yarmouk, he explained, have higher purchasing power, allowing vendors to charge more without losing demand.

Beyond income levels, the economist pointed to structural factors in Baghdad’s commercial environment. Shop rents in upscale areas can be up to ten times higher than those in lower-income districts, a cost that is passed directly on to consumers. Logistics expenses, transportation costs, informal fees, and access difficulties in certain areas further widen the price gap.

Consumption patterns also play a role. In wealthier neighborhoods, shoppers are often willing to pay more in exchange for better conditions, including air-conditioned stores, organized displays, and improved packaging. In lower-income areas, competition is driven almost entirely by price.

He also noted the impact of multiple intermediaries in supply chains. While some districts source goods directly from nearby wholesale markets, others rely on secondary distributors, adding new profit margins at each stage before products reach consumers.

According to Daddoush, modest price differences are economically normal and reflect location-based costs. However, sharp disparities in essential or subsidized goods point to weak oversight and inefficiencies in market regulation. The lack of reference pricing, he added, allows traders to raise prices quickly when the dollar rises while delaying reductions when it falls—a phenomenon known as price stickiness.

To narrow price gaps and improve consumer protection, Daddoush outlined several measures, including publishing daily reference prices for basic goods through a digital platform run by the Ministry of Trade, enforcing barcode systems and electronic invoicing for large retailers, and reducing intermediaries by encouraging direct sales from producers to consumers through government or subsidized outlets.