ERBIL, Kurdistan Region - Rising prices are taking a growing toll on Mahabad in the Kurdish region of Rojhelat in western Iran, where shopkeepers at the city’s second-hand Langa market say tourist visits have fallen sharply as inflation squeezes businesses and consumers.
The market, one of the largest commercial hubs in western Iran, is significantly quieter than in previous years, with traders saying fewer visitors are buying goods even when they come.
“We are stuck in this inflation. The rise in the dollar [value against Iranian currency] has put pressure on everyone - tenants, sellers and buyers,” shopkeeper Malmal Tara told Rudaw.
“Now tourists mostly just look around and leave. Only about 30 percent of them buy goods, and even those who do are not buying as much as in previous years,” he added.
Despite the slowdown in business, shop rents have continued to rise.
“Everyone rents out their shop at whatever price they want, and the shop owner decides the amount. There is no specific regulation,” another shopkeeper told Rudaw.
Most customers at Langa market come from other cities across Iran, but traders say visitor numbers have dropped sharply this year.
“Mahabad’s Langa is one of the largest markets in western Iran. Most of our goods are original, but because of inflation and rising prices, fewer tourists are coming to Mahabad,” shopkeeper Omid Sultani said.
“Mahabad’s market largely depends on tourists, and their numbers have dropped by 50 percent compared with previous years,” he added.
Customers are also struggling with rising prices, with some saying their purchasing power has fallen by at least 70 percent.
“I buy most of my goods from Langa, but prices have changed greatly compared with one or two months ago,” customer Kurdistan Tupa told Rudaw.
“Before, we could buy two or three sets of clothes, but now we can only afford one. Prices have risen sharply. This situation is very difficult for us,” she added.
The slowdown comes at the start of autumn, a period when Langa market would traditionally be crowded with shoppers and visitors.
Economic pressure on Iran has intensified since the outbreak of the war involving Iran, the United States and Israel earlier this year. The conflict has disrupted trade and shipping, particularly through the Strait of Hormuz, while tighter US sanctions have strained access to foreign currency and imports and added to inflationary pressure.
The World Bank has said Iran’s economy has been severely disrupted by conflict and sanctions, with high inflation and declining real incomes weighing on domestic demand. It has also warned that disruptions to imports and trade routes are increasing the cost of essential goods.
Payman Mohammed contributed to this article.
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