UK ONS says energy bill support won’t feed into inflation stats
2022.08.31 09:37
FILE PHOTO: A warning label is seen on the front of a gas meter at a house in Manchester, Britain, September 18, 2021. REUTERS/Phil Noble
LONDON (Reuters) -Britain’s statistics agency ruled on Wednesday that an energy bill rebate offered to households by the government will not feed directly into the country’s inflation statistics.
Economists and bond investors had been looking closely at whether the ONS would classify the support packages as price cuts for consumers that would directly lower headline inflation rates – and with it debt interest costs for the government arising from inflation-linked bonds.However, the Office for National Statistics (ONS) ruled that the Energy Bills Support Scheme should be treated as increasing household income rather than reducing their expenditure.
“Therefore… the payment will not affect either the Consumer Prices Index including owner occupiers’ housing costs (CPIH), the Consumer Prices Index (CPI) or the Retail Prices Index (RPI),” the ONS said in a statement.
