UK inflation rate in 1849: -6.32%

UK Inflation Calculator

£

Inflation in 1849 and Its Effect on Pound Value

Purchasing power increased by 6.32% in 1849 compared to the previous year, 1848. On average, you would have to spend 6.32% less money in 1849 than in 1848 for the same item. This is an example of deflation.

In other words, £1 in 1848 is equivalent in purchasing power to £0.94 in 1849.

The 1848 inflation rate was -12.84%. The inflation rate in 1849 was -6.32%. The 1849 inflation rate is lower compared to the average inflation rate of 2.89% per year between 1849 and 2018.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1849 was 8.9. It was 9.5 in the previous year, 1848. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1849 CPI is less than 1848 CPI, negative inflation (also known as deflation) has occurred.


Inflation from 1848 to 1849
Average inflation rate -6.32%
Converted amount (£1 base) £0.94
Price difference (£1 base) £-0.06
CPI in 1848 9.500
CPI in 1849 8.900
Inflation in 1848 -12.84%
Inflation in 1849 -6.32%


UK inflation chart from 1988 to 2017. Based on the UK Consumer Price Index.


How to Calculate Inflation Rate for £1, 1848 to 1849

This inflation calculator uses the following inflation rate formula:

CPI in 1849CPI in 1848
×
1848 GBP value
=
1849 GBP value

Then plug in historical CPI values. The UK CPI was 9.5 in the year 1848 and 8.9 in 1849:

8.99.5
×
£1
=
£0.94

£1 in 1848 has the same "purchasing power" or "buying power" as £0.94 in 1849.

To get the total inflation rate for the 1 years between 1848 and 1849, we use the following formula:

CPI in 1849 - CPI in 1848CPI in 1848
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.9 - 9.59.5
×
100
=
-6%

News headlines from 1848

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

  • The Mexican-American war ends after signing Treaty of Guadalupe. Texas, California, Arizona and New Mexico went to the United States
  • June Days Uprising begins in Paris.
  • Seneca Falls hosts the first US Women's Rights Convention; it is arranged by Lucretia Mott and Elizabeth Cady
  • Nationalist revolt against British rule in Ireland is put down by police. Event is known as the Tipperary Revolt

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 1849 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 16 Dec. 2018, https://www.officialdata.org/UK-inflation-rate-in-1849.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


» Read more about inflation and investment.