North Korean market prices remain high after spiking earlier this month. With market exchange rates staying elevated, import prices are soaring.
According to Daily NK’s regular survey of North Korean market prices, a kilogram of rice cost 13,800 North Korean won in Pyongyang and 13,900 won in Sinuiju, North Pyongan province, on July 19 – increases of 300 won each from the previous survey on July 5.
Rice prices were highest in Hyesan, Ryanggang province, where a kilogram cost 14,200 won on July 19, marking the first time prices exceeded 14,000 won.
While the rise in rice prices was gentler than the 12% spike over two weeks between late June and early July, they continue climbing steadily.
Corn prices – the staple food for low-income families – also rose. Hyesan again saw the sharpest increase, with corn reaching 5,000 won per kilogram, a record high since North Korea’s chaotic currency reform in 2009.
In other areas, corn prices climbed to the upper 4,000 won range by July 19, up from the mid-4,000 won range at the start of the month.
In previous years, rice and corn prices typically stabilized between early and mid-July after the harvest of alternative grains like wheat and barley. This year, however, the July harvest of alternative grains failed to stabilize prices.
Exchange rates maintain upward trend
North Korean market exchange rates have risen modestly. The U.S. dollar traded at 30,800 won in Pyongyang on July 19, up 0.3% from July 5. Rates were similar in Sinuiju and Hyesan.
North Korea’s won-dollar exchange rate has maintained its slight upward trajectory since crossing the 30,000 won threshold earlier this month.
The Chinese yuan showed similar movement. The yuan traded at 4,180 won in Sinuiju and 4,230 won in Hyesan on July 19, up 0.7% from the previous survey. While the increases weren’t dramatic, rates remain at record highs.
Market oil prices also showed marked increases. As North Korea’s exchange rates rose, imports of oil products like gasoline and diesel likely decreased.
Gasoline prices, which had held steady in the 20,000 won range since late last year, reached 31,500 won per kilogram on July 19 – the first time crossing the 30,000 won threshold. This represented a 15.4% increase from the previous survey two weeks earlier, when it cost 27,300 won. Gasoline prices rose by similar amounts in Sinuiju and Hyesan.
Diesel prices spiked even faster than gasoline. A kilogram of diesel cost 30,300 won in Pyongyang on July 19, 19.8% more than on July 5 – also the first time diesel prices crossed the 30,000 won threshold.
Even imported cooking oil prices climbed noticeably. A kilogram cost 25,000 won in Pyongyang on July 19, 22% more than two weeks earlier. Imported sugar and wheat cost 8.5% and 7.8% more, respectively, than two weeks earlier.
With foreign exchange rates soaring, imported goods prices are likely to continue climbing.
