And this is why “supply chain management” (centrally planned economy or state set prices) fails.

Not really. The alternative is to leave prices up to market forces, in which case they'd be spiking naturally naturally due what's happening in the economy.

The only difference here is we have a commission who sets the prices, and that commission is saying "Looks like the price is going to have to go up due to what's happening in the economy".

The price would spike in either case.