Amid recent news of panic buying and a surge in prices of imported goods in Pyongyang, price hikes have occurred outside of the North Korean capital city as well, Daily NK has learned.
“The prices of Chinese goods have risen sharply in markets across the province, including the Yonbong and Wuiyon markets in Hyesan,” a Ryanggang Province-based source told Daily NK on Apr. 28.
According to the source, the price surge has mainly affected Chinese products, including daily necessities such as sugar, flour, and other cooking products.
For example, the price of Chinese seasoning has increased fourfold to a KPW 40,000 (around USD 6). Flour, rice and other grain prices have also increased. Two weeks ago, imported Chinese rice was being sold at KPW 4,400 per kilogram but is now being sold at KPW 5,500.
The price hikes have not just affected food. Chinese cigarettes have also increased in price: a box of Chinese-made Chang Baishan cigarette packs, for example, which used to cost KPW 12,000, is now KPW 17,000.
“Even Chinese lighters, which usually cost around KPW 700, have seen a price hike of nearly threefold and now cost KPW 2,000,” the Hyesan-based source added.
The main reason for these price surges is the halt in Sino-North Korean trade following the closure of the North Korean-Chinese border in late January. The effects of the steep fall in Sino-North Korean trade were made clear in recent data published by China’s General Administration of Customs. According to this data, Chinese-North Korean trade in March dropped by 91.3% compared to the same period last year to just USD 18.64 million.
“Just two weeks ago merchants were feeling more optimistic given the improved situation in China. Now, they’ve lowered their expectations quite a bit,” the Hyesan-based source told Daily NK, adding, “Prices are rising because business people are intentionally sitting on their stocks with the hope that prices will increase even more.”
Even though the authorities are trying to control the price increases, business people are reportedly avoiding price controls by secretly doing business at home.
Meanwhile, Daily NK is unaware of any reports of panic buying in Hyesan.
“There’s little opportunity to hoard goods if we don’t have money or goods to hoard in the first place,” the source explained.
“Most people think that they’ll just have to live without certain things at this point,” he added.
Note: 1 USD equals KPW 7,310 in Hyesan (see latest market price update)
*Translated by Gabriela Bernal
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