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# UK inflation rate in 1785: -5.26%

### Inflation in 1785 and Its Effect on Pound Value

Purchasing power increased by 5.26% in 1785 compared to 1784. On average, you would have to spend 5.26% less money in 1785 than in 1784 for the same item. This is an example of deflation.

In other words, £1 in 1784 is equivalent in purchasing power to about £0.95 in 1785.

The 1784 inflation rate was 1.33%. The inflation rate in 1785 was -5.26%. The 1785 inflation rate is lower compared to the average inflation rate of 2.18% per year between 1785 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1785 was 7.20. It was 7.60 in the previous year, 1784. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1785 CPI is less than 1784 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -5.26% Converted amount (£1 base) £0.95 Price difference (£1 base) £-0.05 CPI in 1784 7.600 CPI in 1785 7.200 Inflation in 1784 1.33% Inflation in 1785 -5.26%

### How to Calculate Inflation Rate for £1, 1784 to 1785

This inflation calculator uses the following inflation rate formula:

CPI in 1785CPI in 1784
×
1784 GBP value
=
1785 GBP value

Then plug in historical CPI values. The UK CPI was 7.6 in the year 1784 and 7.2 in 1785:

7.27.6
×
£1
=
£0.95

£1 in 1784 has the same "purchasing power" or "buying power" as £0.95 in 1785.

To get the total inflation rate for the 1 years between 1784 and 1785, we use the following formula:

CPI in 1785 - CPI in 1784CPI in 1784
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

7.2 - 7.67.6
×
100
=
-5%

Politics and news often influence economic performance. Here's what was happening at the time:

• The Treaty of Paris, is formally ratified by the US Congress of the Confederation, ending US Revolutionary War
• Russia and Turkey sign an official treaty in Constantinople.
• The Emerald Buddha moves to Wat Phra Kaew, Thailand, which remained his residence for the rest of his life

### Data Source & Citation

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: “Inflation Rate in 1785 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 23 Oct. 2019, https://www.officialdata.org/UK-inflation-rate-in-1785.