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# UK inflation rate in 1855: 2.94%

### Inflation in 1855 and Its Effect on Pound Value

Purchasing power decreased by 2.94% in 1855 compared to 1854. On average, you would have to spend 2.94% more money in 1855 than in 1854 for the same item.

In other words, £1 in 1854 is equivalent in purchasing power to about £1.03 in 1855.

The 1854 inflation rate was 14.61%. The inflation rate in 1855 was 2.94%. The 1855 inflation rate is higher compared to the average inflation rate of 2.89% per year between 1855 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1855 was 10.50. It was 10.20 in the previous year, 1854. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.94% Converted amount (£1 base) £1.03 Price difference (£1 base) £0.03 CPI in 1854 10.200 CPI in 1855 10.500 Inflation in 1854 14.61% Inflation in 1855 2.94%

### How to Calculate Inflation Rate for £1, 1854 to 1855

This inflation calculator uses the following inflation rate formula:

CPI in 1855CPI in 1854
×
1854 GBP value
=
1855 GBP value

Then plug in historical CPI values. The UK CPI was 10.2 in the year 1854 and 10.5 in 1855:

10.510.2
×
£1
=
£1.03

£1 in 1854 has the same "purchasing power" or "buying power" as £1.03 in 1855.

To get the total inflation rate for the 1 years between 1854 and 1855, we use the following formula:

CPI in 1855 - CPI in 1854CPI in 1854
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10.5 - 10.210.2
×
100
=
3%

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

• The Republican Party is formally founded at Ripon, Wisconsin.
• War is declared against Russia (Crimean War) by France and Great Britain.
• The Light Brigade is stormed during Battle of Balaclava leaving 409 dead.
• More than 20 goldminers are killed at at Ballarat, Victoria, for rising up against mining licences. The goldminers were killed by state troopers and the event became known as the Eureka Stockade.

### 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 1855 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 16 Sep. 2019, https://www.officialdata.org/UK-inflation-rate-in-1855.