The government inflation report being released Tuesday is expected to show that price acceleration in the United States remained chronically high in February, putting the Federal Reserve in an unusually tough position. The Fed had been considered sure to raise its benchmark interest rate by at least a quarter-point when it meets next week. Many analysts even expected an aggressive half-point hike if Tuesday’s report for February pointed again to elevated inflation. But that was before last weekend’s two major bank failures and a series of emergency measures that the Fed unveiled to try to bolster confidence in the financial system. With bank share prices cratering Monday and fears of further financial instability roiling markets, most economists now expect the Fed to pause its rate hikes next week to avoid causing any further instability at a delicate moment for the banking system. At the same time, inflation continues to run far above what the Fed wants. Economists have estimated that Tuesday’s report will show that consumer prices rose 0.4% from January to February, according to a survey of economists by the data provider FactSet. That would be slightly less than the increase from December to January but still too fast to be consistent with the Fed’s 2% annual inflation target.Economists have predicted that compared with a year ago, overall inflation rose 6% in February, down from a 6.4% year-over-year jump in January. They have also estimated that so-called core prices, which exclude volatile food and energy costs, rose 5.5% from a year earlier. That would be only slightly below January’s annual pace of 5.6%. Read more: North Korea launches 2 missiles to sea as allies hold drills Jan Hatzius, chief economist at Goldman Sachs, said Goldman now thinks the Fed’s policymakers will pause their rate increases next week. Goldman had previously predicted a quarter-point hike. In a note to clients, Hatzius noted that the Fed, for now, appears even more focused on calming the banking sector and the financial markets than on fighting inflation. “We would be surprised if, just one week after going to great lengths to support financial stability, policymakers risked undermining their efforts by raising interest rates again,” Hatzius wrote in a separate note Monday. If the Fed does pause its rate hikes this month, Hatzius predicted, it will likely resume them when it next meets in May. Ultimately, he still expects the Fed to raise its key rate, which affects many consumer and business loans, to about 5.4% this year, up from the current 4.6%. The Fed may get some unintentional help in its inflation fight from the aftereffects of the collapse of Silicon Valley Bank and New York-based Signature Bank. In response, many small and medium-size banks may pull back on lending to shore up their finances. A lower pace of lending could help cool the economy and slow inflation. The possibility of a Fed pause underscores the sharp shift in the nation’s financial system and economy in barely one week. Last Tuesday, Fed Chair Jerome Powell had told the Senate Banking Committee that if hiring and inflation continued to run hot, the Fed would likely raise rates at this month’s meeting by a sizeable half-point. That would have marked a re-acceleration in the Fed’s efforts to tighten credit. The central bank had raised its benchmark rate by a quarter-point in February, a half-point in December and by three-quarters of point four times before that. The next day, testifying to a House committee, Powell cautioned that no final decision had been made about what the Fed would do at the March meeting. Still, on Friday, the government reported that employers added a robust 311,000 jobs last month. It was a potential sign of continued high inflation, and it led to predictions of a half-point hike at the Fed’s meeting next week. Later that day, though, Silicon Valley Bank failed, thrusting an entirely new set of concerns onto the Fed.

Strongly protesting the fresh hike in power tariffs, BNP Secretary General Mirza Fakhrul Islam Alamgir on Wednesday said people are repeatedly paying the prices of the government's limitless irregularities and plundering in the power sector. In a statement, he urged the government to revoke its unjustified decision of hiking the power prices, saying people will no longer be able to bear the burden of the increased power tariffs. “People are already going through ordeals due to the government’s failure, corruption, looting, mismanagement, and wrong policies. Amid such a situation, frequently increasing the prices of power is an anti-people, strange and unjustified decision of the government,” Fakhrul said.  Just 19 days ago, he said the price of power at the retail level was increased by the government. Also Read: Power tariff further raised at both bulk and retail levels, effective from tomorrow “The hike in the prices of power further at the retail and wholesale levels just after 19 days is a manifestation of the anti-people character of the government,” he said. The BNP leader feared that the prices of all essential items will go up further with the fresh hike in power tariffs. “People can no longer bear this burden.” He said the current government has been frequently increasing the prices of electricity, gas, fuel, edible oil, fertilizers, and other daily necessities as it was not elected by the people. “The government has no regrets about this. Rather it’s telling lies shamelessly in favour of these imprudent moves.” Fakhrul said the Awami League government has increased electricity prices 11 times in the last 14 years. He also termed the government’s move as a subtle trick to take the authority of hiking the tariffs of power and fuel from the hands of the Bangladesh Energy Regulatory Commission. The BNP leader alleged that the government has been taking away money from people’s pockets by raising power tariffs only because of plundering and corruption of the government and its followers. “People have now woken up against the government.” Fakhrul said their party will hold rallies in all divisional cities on February 4 (Saturday) to mount pressure on the government to accept their 10-point demand and lower the prices of power, gas, and daily essentials.  He called upon people from all walks of life to register their protest against the government’s anti-people decisions by making their programme a success with their spontaneous participation. The government on Tuesday increased the retail power price by 5% and the bulk price by over 8% just 19 days after it had hiked the retail price on January 12 this year.  END/UNB/  

The electricity tariff in Bangladesh hiked by 5 percent at the retail level is still less than that of many developed countries, said Information Minister Hasan Mahmud on Friday. A slight increase in electricity tariff is proposed to adjust the subsidy borne by the government, he told the reporters at Rajshahi Circuit House.   “Our government is counting thousands of crores in subsidies for the power sector so that the people do not suffer and can get electricity at a cheap price.” Rising fuel prices in Europe and the UK are driving electricity rationing, driving up prices. But in Bangladesh, the price has not been increased in that way as the power sector is still dependent on fossil fuels, he said. Also Read: BNP paying for "imprudent" decisions: Hasan Mahmud The government has raised the electricity tariff by 5 percent at the retail level that  will be effective from January 1. Now the average tariff for all consumers will go up by Tk0.36 to Tk7.49 from Tk7.13, the Power Division said in a media statement Thursday. Regarding the prime minister’s rally in Rajshahi on January 29, Hasan said the rally will be in a field, but the whole city will turn into a rally that day. There will be millions of people joining the rally. “We believe in the power of the people. And they (BNP) believe in conspiracy and the power of arms. So, all evil forces should be eliminated by the power of the people and that should be shown in the rally of Rajshahi on January 29.” Marking the PM’s rally here, Hasan Mahmud arrived in Rajshahi this morning for an exchange of views with local leaders and a field visit.    

The Bangladesh Vegetable Oil Refiners and Vegetable Manufacturers Association (BVORVMA), an association of owners of edible oil refining and marketing companies, has urged the government to hike prices of soybean oil by Tk 20 per litre.   The BVORVMA gave this proposal to the Bangladesh Trade and Tariff Commission (BTTC) on August 3. The proposal stated that the price of open (loose) soybean oil be raised to Tk 180 a litre, Tk 205 a litre of bottled soybean and Tk 960 for five-litre bottle. Mustafa Abid Khan, a former member of the Tariff Commission, told UNB that when the price of edible oil was earlier adjusted, the dollar price was taken into consideration. As much of the price in the world market fell, the price in the country did not fall accordingly. Read: Soybean oil price cut by Tk14 per litre He said, now the proposal  can be reviewed. However, it should be kept in mind that people are under pressure due to the increase in the prices of commodities. The increase in fuel prices will further increase the pressure, he said.   Along with the price hike proposal, the BVORVMA has also provided a breakdown of the cost.

Consumer rights groups have expressed disappointments with the energy regulator's latest move to raise the average gas price by 22.78 per cent amid economic hardships. "We have been frustrated with the BERC decision when the people are struggling to survive in high inflation of commodity price", said Prof M Shamsul Alam, advisor of the Consumers Association of Bangladesh (CAB). "Rather, the energy regulator mostly considered the profits of the state-owned utility companies and their public shareholders", he told UNB. The Bangladesh Energy Regulatory Commission (BERC) on Sunday announced the gas price hike for retail consumers in the country with back effect from June 1. As per the announcement, the average gas price was raised to Tk 11.91 per cubic metre from the existing Tk 9.70 per cubic metre (CM). As per the new tariff, the household consumers using single burner will now pay Tk Tk 990 (7.03 per cent rise), up from Tk 925 a month, while the double-burner users need to pay Tk 1080 (10.77 per cent rise), up from Tk 975. The household consumers will bear the brunt of the hike as they have to pay Tk 18 per Cubic metre (42.86 per cent rise), up from existing Tk 12.60 per cubic metre (CM). The CAB earlier placed an alternative proposal to the government to keep the tariff unchanged and provide a subsidy of Tk 6489 crore to the energy and power sector. It recommended major reforms in energy and power sector aimed at stopping pilferage, malpractice, irregularities, corruption and misuse of gas and electricity. The CAB said that only a Tk 2,400 is required for energy sector while Tk 5089 crore is for power sector to keep the current price unchanged. The CAB's alternative proposal also includes enhancing local gas production and shutting down costly rental, quick rental and inefficient power plants.          “Our alternative proposals were not taken into cognizance in making the decision", said the Cab advisor. Shamsul Alam said the government normally withdraws taxes and duties on any product when its price goes up on international markets.   "But in case of petroleum or gas import, the government does not prefer such steps", he noted. Mohiuddin Ahmed, convener of the Bangladesh Citizen Society, said that the gas price hike is completely illogical and made in a syndicated way. During the public hearing the state-run companies failed to place any convincing evidence in support of raising gas prices, he said. Despite that the energy regulator raised the gas price instead of taking action against corruption and pilferage in the energy sector, he regretted.

Bangladesh Energy Regulatory Commission (BERC) will hold public hearing on a proposal for raising electricity tariff at bulk level on May 18. The state-run Bangladesh Power Development Board (BPDB) moved the proposal last month urging the energy regulator to set the bulk power tariff at Tk8.58 instead of existing 5.17 per kilowatt hour (each unit). The BERC in public notice informed that the public hearing will be held at Biam Auditorium in the city from 10.30 am to 5 pm on May 18. Also read: Proposed gas price hike: Petrobangla under fire at public hearing It also requested the interested parties and individuals who want to participate in the hearing to send the opinions in written by April 28 and enlist their names for the hearing. The BPDB claims in its proposal to the energy regulator that it will incur a loss of Tk 30,251 crore in the current fiscal year if the bulk tariff is not raised. It attributed to the increasing fuel cost and other soaring expenses for financial losses saying that the production cost of electricity has gone up to Tk 4.24 per unit in 2022 from Tk 2.13 in the fiscal year 2019-20. Power industry insiders said that it is obvious that if the bulk electricity is raised, it will ultimately push up the tariff at retail level. Any rise in bulk tariff will be applicable for the power distribution companies as they are the bulk consumers. They buy electriocity from BPDB in bulk and then sell it to the public at retail rates. So, the public hearing on retail tariff will come consequently, said an industry insider. Also read: Public hearing on LPG pricing postponed again All the state-owned power distribution companies have already submitted their respective proposals to the BERC to raise the power rates at retail level. But this time, the BERC is going to hold public hearing on bulk tariff proposal keeping pending the request for raising retail price. BERC member Syed Mokbul-e-Elahi Chowdhury said the it wants to first settle the bulk tariff proposal. “This time we want to keep the hearing only on the bulk tariff proposal... the issue of retail tariff will be settled later by the commission”, he told UNB.

BNP on Wednesday alleged that the government is trying to increase the water tariff of Dhaka Water Supply and Sewerage Authority (Wasa) again to "mount public sufferings". “A special meeting of the Wasa board on Monday proposed a 40 per cent increase in water prices, which will cause a great distress to common people," said BNP senior joint secretary general Ruhul Kabir Rizvi. Speaking at a press conference at BNP’s Nayapaltan central office, he said the government has taken this move to make its pocket heavier by "snatching public money". The BNP leader alleged that the government is making all arrangements to "kill" people without rice and water by throwing the country into poverty, corruption and acute instability. READ: Revoke decision to hike in LPG prices: BNP “We strongly condemn the Wasa’s move to raise water prices, and urge them to immediately move away from such an inhumane proposal,” Rizvi said. Meanwhile, Dhaka Wasa managing director Taksim A Khan on Wednesday said they want to increase the prices of water by at least 20 percent to reduce the government subsidy. On May 24, last year, the Dhaka Wasa raised water tariff by five per cent witg effect from July 1, 2021. Dhaka Wasa increased the water tariff 14 times in the last 13 years since Awami League came to power. The current tariff for each unit of water (1,000 litres) is Tk 15.18 for residential use against the production cost of Tk 25. Rizvi slammed Foreign Minister Dr AK Abdul Momen and Home Minister Asaduzzaman for their remarks denying the incidents of enforced disappearance in the country. “The Foreign Minister at a programme on February 5 said a UN organisation gave them a list of missing people and they later found many of them drowned in the Mediterranean Sea. A day later, the Home Minister said our law enforcement agencies aren’t  involved in any incidents of enforced disappearance. Whenever anyone goes missing, they return after some days,” the BNP leader said. Rizvi said the two ministers’ remarks on the victims of enforced disappearance are ridiculous, indecent and cruel. “These comments only exposed their perverted mentality.” READ: People to turn down search committee’s recommendations: BNP  He said it is now proved globally that the current ‘illegitimate’ regime has restored to enforced disappearance, murder, extrajudicial killings, and repressive acts to suppress the opposition forces. “So, the ministers of the government are making all these irrational, unguarded and hateful statements in fear of losing power,” Rizvi observed.

Edible oil prices will not be raised in the next 15 days but will be readjusted with the global market after a meeting with stakeholders, said Commerce Minister Tipu Munshi. “This is how the oil prices need to be kept stable during Ramadan. Or else, traders will be discouraged to import it,” said the minister on Wednesday. Tipu Munshi was talking to reporters at the Osmani Memorial Auditorium in the capital after the DCs Conference. READ: No increase in edible oil price now, govt decides after meeting with traders "We need 20 lakh tonnes of edible oil per year. But the country can supply only two lakh tonnes. As a huge quantity of oil has to be imported, any rise in the prices on the international market also affects the local market,” Tipu added. The minister said now the price of edible oil on the international market has gone up to Tk 8000-10,000 per container from Tk 2,000-2,500, resulting in price hike here.  “So, the prices need to be readjusted one and a half or two months later.” If the prices are not readjusted, the traders will not open LCs ahead of Ramadan which may cause a horrible situation during the holy month, he added. About the tendency of traders not to open LCs, Salman F Rahman, Private Sector Industry and Investment Adviser to the Prime Minister, said, “If the traders don’t want to open LCS, the government can force them. They won’t import anything incurring losses. But we’ve to make sure they don’t make excessive profits,” he added. The commerce minister said, “We’ve talked to them over the matter. We’ll sit on February 6/7 and adjust the edible oil prices comparing the international market price and its associated costs. We made a decision in this regard today.” Tipu Munshi urged the DCs to play a stronger role in keeping the prices of essentials stable during the holy month of Ramadan. READ: Edible oil to get costlier by Tk 7 per litre from Wednesday They have been instructed to strengthen the market monitoring to keep the prices of key items at a tolerable level during the Ramadan. “Ramadan is coming and we will fix the prices of some items and the DCs have been asked to monitor it strictly and take legal action,” the commerce minister added.

Amid the soaring price hike of daily essentials in the country, the Trading Corporation of Bangladesh (TCB) selling goods at subsidised prices is the only relief for the low and lower-middle income people in the capital.

Both Bangladesh Rural Electrification Board (BERB) and the technical evaluation committee (TEC) of Bangladesh Energy Regulatory Commission (Berc) are of the same opinion that if the bulk supply tariff is not increased, it will not be required to raise the retail tariff of electricity.