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# UK inflation rate in 1889: 1.15%

### Inflation in 1889 and Its Effect on Pound Value

Purchasing power decreased by 1.15% in 1889 compared to 1888. On average, you would have to spend 1.15% more money in 1889 than in 1888 for the same item.

In other words, £1 in 1888 is equivalent in purchasing power to about £1.01 in 1889.

The 1888 inflation rate was 1.16%. The inflation rate in 1889 was 1.15%. The 1889 inflation rate is lower compared to the average inflation rate of 3.80% per year between 1889 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1889 was 8.80. It was 8.70 in the previous year, 1888. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 1.15% Converted amount (£1 base) £1.01 Price difference (£1 base) £0.01 CPI in 1888 8.700 CPI in 1889 8.800 Inflation in 1888 1.16% Inflation in 1889 1.15%

### How to Calculate Inflation Rate for £1, 1888 to 1889

This inflation calculator uses the following inflation rate formula:

CPI in 1889CPI in 1888
×
1888 GBP value
=
1889 GBP value

Then plug in historical CPI values. The UK CPI was 8.7 in the year 1888 and 8.8 in 1889:

8.88.7
×
£1
=
£1.01

£1 in 1888 has the same "purchasing power" or "buying power" as £1.01 in 1889.

To get the total inflation rate for the 1 years between 1888 and 1889, we use the following formula:

CPI in 1889 - CPI in 1888CPI in 1888
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.8 - 8.78.7
×
100
=
1%

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

• The National Geographic Society is founded in Washington.
• The Constantinople Convention is signed: it guarantees free maritime passage through the Suez Canal during war and peace.
• Handel's Israel in Egypt on wax cylinder becomes first known recording of classical music
• In a State Emigrant Hospital, New York, Edith Eleanor McLean becomes the first baby to be placed in an incubator
• Vincent van Gogh, Dutch painter, cuts off his ear and sends it to a prostitute for safe keeping

### 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 1889 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Sep. 2019, https://www.officialdata.org/UK-inflation-rate-in-1889.