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# UK inflation rate in 1826: -5.79%

### Inflation in 1826 and Its Effect on Pound Value

Purchasing power increased by 5.79% in 1826 compared to 1825. On average, you would have to spend 5.79% less money in 1826 than in 1825 for the same item. This is an example of deflation.

In other words, £1 in 1825 is equivalent in purchasing power to about £0.94 in 1826.

The 1825 inflation rate was 17.48%. The inflation rate in 1826 was -5.79%. The 1826 inflation rate is lower compared to the average inflation rate of 2.41% per year between 1826 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1826 was 11.40. It was 12.10 in the previous year, 1825. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1826 CPI is less than 1825 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -5.79% Converted amount (£1 base) £0.94 Price difference (£1 base) £-0.06 CPI in 1825 12.100 CPI in 1826 11.400 Inflation in 1825 17.48% Inflation in 1826 -5.79%

### How to Calculate Inflation Rate for £1, 1825 to 1826

This inflation calculator uses the following inflation rate formula:

CPI in 1826CPI in 1825
×
1825 GBP value
=
1826 GBP value

Then plug in historical CPI values. The UK CPI was 12.1 in the year 1825 and 11.4 in 1826:

11.412.1
×
£1
=
£0.94

£1 in 1825 has the same "purchasing power" or "buying power" as £0.94 in 1826.

To get the total inflation rate for the 1 years between 1825 and 1826, we use the following formula:

CPI in 1826 - CPI in 1825CPI in 1825
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

11.4 - 12.112.1
×
100
=
-6%

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

• Forced relocation of the Eastern Indians to the Indian Territory approved by the US Congress.
• Russia and Great Britain establish the boundary between Alaska and Canada.
• Brazil's independence is recognized by Portugal
• Beginning of Decembrist uprising in Russia, against Russian emperor Nicholas I

### 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 1826 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 14 Sep. 2019, https://www.officialdata.org/UK-inflation-rate-in-1826.