“... signalling that the state is unable to provide rations anymore, Daily NK has learned.”
This newspaper says that prices are rising as demand is going up. I think this might be a move by the central government to prepare for massive quarantines around the country. They would expect their factories to continue production even if they are isolated, and their local governmental and military units to be able to control the populace without new supplies.
How can that be? That would happen in a capitalist country with free markets and supply/demand reaching natural equilibrium. It doesn't work that way in Commieland.