North Korea economy meltdown as inflation soars amid 'panic buying'

Some North Koreans are reportedly panic buying amid fears prices will soar even higher. (Image: Getty)

North Koreans are reportedly panic buying essential items such as corn and rice due to fears they will not be able to afford them in the future. Authorities are trying to crack down on the increasing cost of living that has been accelerating since mid-February, a source revealed.

They told Daily NK: "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." Staple foods such as flour, sugar, and cooking oil now cost 20% more than in January, with rice and corn also increasing in price. This has prompted panices citizens to panic buy their essentials in case costs are hiked even further.

North Korean authorities are trying to get a handle on rising costs. (Image: Getty)

Pyongang's policy is to blame the root cause of inflation on "arbitrary price increases" by merchants, who will face "merciless" punishment for doing so.

The source continued: "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."

These "strike forces" are reportedly turning up to people's homes posing as customers to inspect sellers and their prices.

The source added: "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.

"People are also criticizing that these intensified controls and crackdowns will only expand the black market."