Market prices in North Korea have roughly doubled since last January, according to Daily NK’s latest findings.<\/p>\n
The North Korean won has seen a dramatic decline against foreign currencies, with the won-dollar exchange rate nearly tripling over the past year. The impact of this currency depreciation varies significantly based on income levels among North Koreans.<\/p>\n
Recent market surveys show the dollar trading at 22,100 won in Pyongyang as of January 3rd. The exchange rate climbed from 18,000 won in early November to 20,000 won in December, though the pace of increase has slowed entering the new year.<\/p>\n
Similar exchange rates were observed in other major cities, including Sinuiju and Hyesan. The current rate represents a 166.3% increase from early January 2024, when it stood at 8,300 won \u2013 marking the steepest annual rise since the 2009 currency reform.<\/p>\n
While the won has also weakened substantially against the Chinese yuan, the depreciation hasn’t been as severe as against the dollar. The won-yuan rate in Pyongyang reached 3,200 won on Jan. 5, up 156% from last January’s 1,250 won.<\/p>\n
The currency collapse has driven up import prices dramatically. Gasoline now costs 24,400 won per kilogram in Pyongyang markets, while diesel sells for 21,300 won \u2013 increases of 92.1% and 88.5% respectively from last year. Essential food imports like cooking oil and sugar have seen similar price hikes of 85% and 97.9%.<\/p>\n
Wheat flour stands as a notable exception, maintaining relatively stable prices due to limited demand and controlled distribution through state-run trading companies.<\/p>\n
Domestic food prices, while rising less sharply than imports, still pose significant challenges. Rice now sells for 8,500 won per kilogram in Pyongyang, up 76% from last January’s 4,820 won. Corn prices have risen even more steeply, jumping 86% to 4,200 won per kilogram. Pork has more than doubled in price to 31,200 won per kilogram, though this appears largely due to African swine fever outbreaks rather than currency factors.<\/p>\n
The economic impact varies drastically by social class. Poor families and those with modest incomes are struggling to afford basic necessities, with many rural households reportedly running out of food despite switching to cheaper alternatives. In contrast, senior officials and those in management positions at major organizations have been largely insulated from the price increases, benefiting from substantial wage hikes last year.<\/p>\n
“Large-scale traders and senior managers aren’t feeling the squeeze,” a Pyongyang source told Daily NK recently. “With their wages increasing more than tenfold last year, some even claim the government is keeping rice prices artificially low.”<\/p>\n
These developments suggest a growing economic divide between those connected to major institutions and party organizations and the general population.<\/p>\n