The arrows in North Korea means that some people complain of having to carry a backpack full of money just to shop, told residents of the Radio Asia Radio.
Despite the government’s attempts to closely control prices, the cost of numerous items on informal markets called jangadangWho has become a part of the economy after the famine that struck North Korea in the 1990s, regularly increased.
North Korean authorities initially prohibit jangadangBut they gradually authorized the markets because they provided a way for people to survive. Many women in particular have set up stands and small businesses to earn money for their families because the wages that their husbands are used by the state is so low.
But in the past two years, the price of eggs, sugar, pork, rice and cooking oil has jumped twice, according to two sources in the province of Yanggang.
The main reason seems to be a shortage of supplies and the depreciation of the North Korean won against the Chinese Yuan and the US dollar, which makes the goods more expensive in local currency, according to sources.
“Market prices have jumped at least twice and, in some cases, more than five times,” said a resident in the province of Yanggang who asked for anonymity for security reasons. “Now, instead of carrying a silver pocket on the market, people must literally bring a backpack full of money.”
North Korea does not point out consumer prices data, so the examples of specific products reflect changes.
For example, a kilogram of sunflower oil, used for cooking, has almost tripled to 75,000 won in the past two years, while Sugar has crossed four to 40,000 wons. A kilogram of pork has more than tripled to 87,000 won.
Since 1,000 -year -old tickets are commonly used for daily transactions, the purchase of one kilogram of sugar would require a battery of 40 invoices of this type. Smaller invoices would require even more.
North Korea is chronically below food, and most people find it difficult to get food on their tables in the middle of bad harvests and a weak economy always recovering from Cavid-19 closings. Each year, people die of hunger, say the experts.
The United Nations World Food Program says that agriculture is regularly below people to meet the food needs of people due to the shortage of arable land and lack of access to fertilizers and modern agricultural equipment.
This prompted some to take desperate measures. Last month, the FRG said that hungry North Korean soldiers sell part of their military equipment to buy food.
In August 2023, RFA Korean reported that murder and other violent crimes were increasing in the middle of hunger.
Salary hikes
In addition, prices seem to have increased after the government increased wages in January 2023.
In North Korea, almost everyone’s wages are fixed by the state. In 2023, the basic wages of workers were raised 2,000 gained 30,000 won per month.
The apparent objective of this plan was to increase wages while keeping the prices stable. The authorities wanted to encourage workers to rely on their wages for subsistence costs rather than engaging in secondary companies or money manufacturing activities in the jangadang markets.
However, due to widespread shortages of food and many other products, the plan has failed. On jangadang The markets across the country, prices have regularly climbed, according to residents.
Two years ago, before salary hikes, one kilogram of salt cost 500 won, but it is now worth 2,000 won. An egg card went from 800 to 2,000 won, according to residents.
The shoes are also more expensive. Before wage hikes, a pair of sneakers made at Sinuiju Shoe Factory sold for 19,800 won, but now they cost 170,000 won on the black market.
“While wages have increased, prices for all other necessities have just like prices, which make the government has decided to increase wages in the first place,” he said. “Instead of improving people’s livelihoods, the increase in wages has only made everyday life even more difficult.”
An official of the party of the province of Yanggang, who also asked for anonymity, said that the rice price had almost doubled at 9,400 won per kilogram jangadang markets.
The prices of tobacco and cigarettes have increased. Last March, a kilogram of “Yanggang Wild Tobacco” cost 400,000 won, but it has now climbed to 2.5 million won.
“To buy only 1 kilogram of tobacco, you would need 500 invoices of 5,000 5,000 -year terminals from North Korea,” said official.
Won weaker
Meanwhile, the national currency has weakened against the US dollar and the Chinese Yuan, which are widely used on the markets – despite the authorities’ attempts to restrict their use.
He has also increased the price of goods if customers pay in Won.
Before the salary hike in 2023, 1 Chinese yuan bought 1,260 won and 1 US dollar equaled 8,500 won on the black market. But now a yuan is worth around 3,500 won and one dollar is worth 24,000 won.
“The North Korean currency has become so exhausted that it is hardly recognizable, and with arrow prices, people have no choice but to use the Chinese Yuan,” said the party official.
The use of foreign currencies has even become a symbol of status.
“Among the young and the rich, a common way to show up is to say:” I do not play with North Korean money “, said the manager. “Those who have financial means use only Chinese Yuan or US dollars, while the North Korean currency has essentially become the currency of the poor.”
Edited by Malcolm Foster.