North Korea’s market rice prices have once again reached a record high.
According to Daily NK’s regular survey of market prices in North Korea, a kilogram of rice in a particular market in Pyongyang cost 15,200 North Korean won on Aug. 3, 10.1% more than it cost during the July 19 survey, when it was 13,800 won.
Market rice prices climbed by similar levels in other regions. A kilogram of rice cost 15,250 won and 15,300 won in markets in Sinuiju, North Pyongan province, and Hyesan, Ryanggang province, respectively, on Aug. 3, recording spikes of 9.7% and 7.7% from two weeks earlier.
In Hyesan, where rice prices have jumped most dramatically, the market rice price had crossed the 14,000 won line first, even as it remained in the upper 13,000 won range in other regions. However, with market rice prices soaring in other regions this month, rice now costs over 15,000 won a kilogram across the country.
This is the first time the market price of rice has surpassed 15,000 won a kilogram since North Korea’s chaotic 2009 currency reform.
North Korean rice prices had remained in the 5,000 won range per kilogram since before the COVID-19 pandemic. However, they have continued climbing since North Korea’s exchange rates began skyrocketing in the first half of last year.
After crossing the 9,000 won threshold in December last year, North Korea’s rice prices entered the 12,000 won range in early June and surpassed 15,000 won this month.
Mixed trends in other commodities
Market corn prices have fallen, with fluctuation rates differing by item.
In a specific market in Pyongyang, a kilogram of corn cost 4,300 won on Aug. 3, a 4.3% drop from the previous survey on July 19. The price of corn dropped by similar levels in other regions, with a kilogram of corn costing 4,700 won in Hyesan’s markets on Aug. 3, a 6% fall from two weeks earlier.
The drop in North Korean market corn prices from over 5,000 won a kilogram last month to the 4,000 won range early this month was due to food rations provided to some parts of the population to mark the country’s so-called Victory Day celebrating the conclusion of the Korean War on July 27, as well as relatively heavy sales at state-run grain shops across the country that day.
However, because these types of food provisions for state holidays are temporary, the drop in corn prices is likely temporary as well.
Fluctuations in North Korea’s exchange rates also varied. The exchange rate for the U.S. dollar — which had continuously soared — fell for the first time in three months.
The won-dollar market exchange rates in Pyongyang and Sinuiju were 30,000 won and 30,100 won, respectively, on August 3, 2.6% and 2.3% lower than they were on July 19.
On the other hand, the rate for the Chinese yuan continued climbing. In Sinuiju, the won-yuan rate was 4,280 won, 2.4% higher than in the previous survey on July 19. The rate in Hyesan was 4,250 won to the yuan, 0.5% higher than the previous survey.
Various factors appear behind the drop in North Korea’s previously soaring exchange rates, or at least the slowing of their climbs, including recent inspections and restrictions on large trading companies, a drop in domestic demand for foreign currency due to the skyrocketing exchange rates, and intensified government controls on private foreign currency transactions in North Korea.
However, whether the drop in exchange rates is temporary remains to be seen.
