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# UK inflation rate in 1806: -3.82%

### Inflation in 1806 and Its Effect on Pound Value

Purchasing power increased by 3.82% in 1806 compared to 1805. On average, you would have to spend 3.82% less money in 1806 than in 1805 for the same item. This is an example of deflation.

In other words, £1 in 1805 is equivalent in purchasing power to about £0.96 in 1806.

The 1805 inflation rate was 15.93%. The inflation rate in 1806 was -3.82%. The 1806 inflation rate is lower compared to the average inflation rate of 2.13% per year between 1806 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1806 was 12.60. It was 13.10 in the previous year, 1805. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1806 CPI is less than 1805 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -3.82% Converted amount (£1 base) £0.96 Price difference (£1 base) £-0.04 CPI in 1805 13.100 CPI in 1806 12.600 Inflation in 1805 15.93% Inflation in 1806 -3.82%

### How to Calculate Inflation Rate for £1, 1805 to 1806

This inflation calculator uses the following inflation rate formula:

CPI in 1806CPI in 1805
×
1805 GBP value
=
1806 GBP value

Then plug in historical CPI values. The UK CPI was 13.1 in the year 1805 and 12.6 in 1806:

12.613.1
×
£1
=
£0.96

£1 in 1805 has the same "purchasing power" or "buying power" as £0.96 in 1806.

To get the total inflation rate for the 1 years between 1805 and 1806, we use the following formula:

CPI in 1806 - CPI in 1805CPI in 1805
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

12.6 - 13.113.1
×
100
=
-4%

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

• The British navy, led by Admiral Horatio Nelson, defeat the French and Spanish fleet in the Battle of Trafalgar. Admiral Nelson is killed during battle.
• The American West is crossed for the first time when an expedition, led by Lewis Clark, reaches the Pacific Ocean
• The Rocky Mountains are seen for the first time by Lewis and Clark on their expedition.

### 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 1806 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 17 Sep. 2019, https://www.officialdata.org/UK-inflation-rate-in-1806.