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# UK inflation rate in 1884: -2.15%

### Inflation in 1884 and Its Effect on Pound Value

Purchasing power increased by 2.15% in 1884 compared to 1883. On average, you would have to spend 2.15% less money in 1884 than in 1883 for the same item. This is an example of deflation.

In other words, £1 in 1883 is equivalent in purchasing power to about £0.98 in 1884.

The 1883 inflation rate was -1.06%. The inflation rate in 1884 was -2.15%. The 1884 inflation rate is lower compared to the average inflation rate of 3.63% per year between 1884 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1884 was 9.10. It was 9.30 in the previous year, 1883. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1884 CPI is less than 1883 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -2.15% Converted amount (£1 base) £0.98 Price difference (£1 base) £-0.02 CPI in 1883 9.300 CPI in 1884 9.100 Inflation in 1883 -1.06% Inflation in 1884 -2.15%

### How to Calculate Inflation Rate for £1, 1883 to 1884

This inflation calculator uses the following inflation rate formula:

CPI in 1884CPI in 1883
×
1883 GBP value
=
1884 GBP value

Then plug in historical CPI values. The UK CPI was 9.3 in the year 1883 and 9.1 in 1884:

9.19.3
×
£1
=
£0.98

£1 in 1883 has the same "purchasing power" or "buying power" as £0.98 in 1884.

To get the total inflation rate for the 1 years between 1883 and 1884, we use the following formula:

CPI in 1884 - CPI in 1883CPI in 1883
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.1 - 9.39.3
×
100
=
-2%

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

• The first electric lightning system employing overhead wires, is built by Thomas Edison.
• Turkey and Europe are connected by rail; the Orient Express has its first run.
• Brooklyn Bridge is opened by President Arthur and New York Governor Cleveland.

### 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 1884 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 20 Jul. 2019, https://www.officialdata.org/UK-inflation-rate-in-1884.