However, this isn't inflation due to too much money sloshing around, it's more about lack of supply vs. huge demand, and people will be focussing on food/water.

I don't see it creating a huge upsurge in demand for property, so how would high interest rates curb inflation in this scenario? It wouldn't, it just sounds like another one of their scams.

I'm no financial expert, so I may be missing something obvious here :)