According to the Office for National Statistics composite price index, prices in 2018 are 18.37% higher than prices in 2011. The pound experienced an average inflation rate of 2.44% per year during this period.
In other words, £40,000 in 2011 is equivalent in purchasing power to £47,349.51 in 2018, a difference of £7,349.51 over 7 years.
The 2011 inflation rate was 5.20%. The current inflation rate (2017 to 2018) is now 2.20%1. If this number holds, £40,000 today will be equivalent to £40,880.00 next year.
|Cumulative price change||18.37%|
|Average inflation rate||2.44%|
|Converted amount (£40,000 base)||£47,349.51|
|Price difference (£40,000 base)||£7,349.51|
|CPI in 2011||927.800|
|CPI in 2018||1,098.272|
|Inflation in 2011||5.20%|
|Inflation in 2018||2.20%|
This chart shows calculations of buying power equivalence over time for £40,000 in 2011 (price index tracking began in 1750).
According to the Office for National Statistics, each of these GBP amounts below is equal in terms of what it could buy at the time:
|Year||GBP Value||Inflation Rate|
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The UK CPI was 927.8 in the year 2011 and 1098.27186 in 2018:
£40,000 in 2011 has the same "purchasing power" or "buying power" as £47,349.51 in 2018.
To get the total inflation rate for the 7 years between 2011 and 2018, we use the following formula:
Plugging in the values to this equation, we get:
Politics and news often influence economic performance. Here's what was happening at the time:
Raw data for these calculations comes from the composite price index published by the UK Office for National Statistics (ONS). A composite index is created by combining price data from several different published sources, both official and unofficial. The Consumer Price Index, normally used to compute inflation, has only been tracked since 1988. All inflation calculations after 1988 use the Office for National Statistics' Consumer Price Index, except for 2017, which is based on The Bank of England's forecast.
You may use the following MLA citation for this page: “£40,000 in 2011 → 2018 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 17 Nov. 2018, https://www.officialdata.org/2011-GBP-in-2018?amount=40000.
in2013dollars.com is a reference website maintained by the Official Data Foundation.