＜Inside N.Korea＞ Is Economic Sanction Really Effective? Searching Effect from Retail Price Index

Chinese wine with a label, ‘Insam Sambosul,’ written in Korean along with Chinese noodle. At a border town on October 2013

◆ Economic sanction and the prices of goods

Following briefs are on the price trend of goods. There have been fluctuations in prices of goods; however, it is not certain whether it is due to other factors.

* Chinese RMB, which has been stable during several years, has gradually risen from early March when the sanction began. It was dropped again in mid March. The value fluctuation became wider.

* While the staple food, ‘rice,’ and ‘corn,’ have been stable for the last two years, the price of rice increased sharply from April by 20% compared to that of last year. On the opposite, corn price plummeted drastically since last year and shows severe fluctuation in May. The reason is not certain yet. As a result of price drop, farmers are greatly suffering.

* The price of gasoline and diesel is surely increasing, which pushed up the fare for commercial vehicle, called ‘Servi Car,’ and bus.

* The prices of shoes, clothes and boots from China have shown a sharp rise from early March. The price of a pair of shoes is said to have risen by 20-40 RMB, compared to that of last year. High quality clothes also show increase in price. There have been several cases of cornering Chinese products in Nasun market by wholesalers who expect price of goods to be risen in future.

*There is no report of limitation of daily goods from China at the border customs.

*There is no report that ordinary people feel any serious burden from the economic sanction on May 20 yet.

※ Major contents of Resolution 2270 to sanction North Korea
(1) Prohibition on exporting aviation fuel (including rocket fuel) to North Korea; exception allowed
(2) Prohibition on importing coal and iron ore from North Korea; exception allowed
(3) Requirement to inspect all North Korean cargo
(4) Denial of port access for North Korean cargo if there are reasonable grounds to suspect the violation of the Resolution
(5) Imposition of sweeping ban on North Korean banks
(6) Substantial expansion of the list of individuals and entities subject to the asset freeze and travel ban

* Editor’s notes on North Korean reporters
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