ONS: UK energy price caps will help to reduce inflation

The UK’s Office for National Statistics (ONS) said on Monday, it expects the country’s energy price cap for consumers and government-funded discounts on bills for businesses to bring down official measures of inflation, per Reuters.

Key takeaways

“The Energy Price Guarantee (EPG) for households, and the Energy Bill Relief Scheme for businesses, would lower the unit prices of energy that feed into inflation indexes.”

“The consumer prices index "will hence be lower while the schemes are in operation than if the EPG had not been introduced.”

“Similarly, the energy bill scheme for businesses would help to lower the input measure of the producer prices index.”

Market reaction

The pound receives little support from the ONS report, as GBP/USD is drowning by 0.50% so far, breaching 1.1550, at the press time.