grasshopper market exchange rate grain
A "grasshopper market," or unofficial market, in a village near Pyongyang. (Chinese blogger Lóng Wǔ*Láng Zhī Wěn)
North Korean authorities have begun taking aggressive action against nationwide price increases that started in mid-February, Daily NK has learned.
“The government has launched a response as rising prices that began in major cities like Pyongyang and Pyongsong last month have spread throughout the country, with general inflation increasing the financial burden on ordinary citizens,” a source told Daily NK recently.
Despite several earlier warnings to merchants against arbitrarily raising prices, costs have continued to climb steadily since mid-February. The price surge initially began in markets across Pyongyang, the capital city. As news spread, markets in nearby Pyongsong soon followed, with essential items like flour, sugar, and cooking oil jumping more than 20% in price.
Rice, corn, and other staple foods have also become more expensive, intensifying hardships for many North Koreans. Some residents have reportedly started panic buying, fearing prices might climb even higher.
With struggling citizens facing increasingly difficult circumstances, North Korean authorities finally took action, according to the source.
Officials from South Pyongan province’s people’s committee, along with local city and county committees, have reminded merchants of state policy that blames “arbitrary price increases” as the root cause of inflation. They’ve warned that merchants engaging in such practices will face “merciless” sanctions.
“Joint market strike forces formed by Pyongsong’s people’s committee and city police have been inspecting markets to crack down on merchants who encourage price increases or sell at unusually high prices. They’re threatening to revoke market selling privileges and impose punishments,” the source explained.
These strike teams aren’t limiting their efforts to formal markets. They’ve also targeted home-based sellers, creating tension throughout communities as enforcers visit private residences posing as potential customers.
“Prices are rising because essential goods are scarce, and merchants are growing increasingly frustrated with the government, which simply threatens punishment without acknowledging its own responsibility,” the source added. “People are also criticizing that these intensified controls and crackdowns will only expand the black market.”
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