£

UK inflation rate in 1868: -0.99%

Inflation in 1868 and Its Effect on Pound Value

Purchasing power increased by 0.99% in 1868 compared to 1867. On average, you would have to spend 0.99% less money in 1868 than in 1867 for the same item. This is an example of deflation.

In other words, £1 in 1867 is equivalent in purchasing power to about £0.99 in 1868.

The 1867 inflation rate was 6.32%. The inflation rate in 1868 was -0.99%. The 1868 inflation rate is lower compared to the average inflation rate of 3.18% per year between 1868 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1868 was 10.00. It was 10.10 in the previous year, 1867. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1868 CPI is less than 1867 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -0.99% Converted amount (£1 base) £0.99 Price difference (£1 base) £-0.01 CPI in 1867 10.100 CPI in 1868 10.000 Inflation in 1867 6.32% Inflation in 1868 -0.99%

How to Calculate Inflation Rate for £1, 1867 to 1868

This inflation calculator uses the following inflation rate formula:

CPI in 1868CPI in 1867
×
1867 GBP value
=
1868 GBP value

Then plug in historical CPI values. The UK CPI was 10.1 in the year 1867 and 10 in 1868:

1010.1
×
£1
=
£0.99

£1 in 1867 has the same "purchasing power" or "buying power" as £0.99 in 1868.

To get the total inflation rate for the 1 years between 1867 and 1868, we use the following formula:

CPI in 1868 - CPI in 1867CPI in 1867
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10 - 10.110.1
×
100
=
-1%

News headlines from 1867

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

• The House of Commons passes the British North America Act, which later serves as Canada's constitution.
• Joseph Lister, publishes an article in The Lancet, outlining the discovery of antiseptic surgery.
• Russia sells Alaska to the United States for total of \$7,200,000, or 2 cents/acre.
• Karl Marx Publishes ‘Das Kapital’.

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 1868 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Jul. 2019, https://www.officialdata.org/UK-inflation-rate-in-1868.

Special thanks to QuickChart for providing downloadable chart images.

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

 Average inflation rate -0.99% Converted amount (£1 base) £0.99 Price difference (£1 base) £-0.01 CPI in 1867 10.100 CPI in 1868 10.000 Inflation in 1867 6.32% Inflation in 1868 -0.99%