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# UK inflation rate in 1893: -1.12%

### Inflation in 1893 and Its Effect on Pound Value

Purchasing power increased by 1.12% in 1893 compared to 1892. On average, you would have to spend 1.12% less money in 1893 than in 1892 for the same item. This is an example of deflation.

In other words, £1 in 1892 is equivalent in purchasing power to about £0.99 in 1893.

The 1892 inflation rate was 0.00%. The inflation rate in 1893 was -1.12%. The 1893 inflation rate is lower compared to the average inflation rate of 3.92% per year between 1893 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1893 was 8.80. It was 8.90 in the previous year, 1892. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1893 CPI is less than 1892 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -1.12% Converted amount (£1 base) £0.99 Price difference (£1 base) £-0.01 CPI in 1892 8.900 CPI in 1893 8.800 Inflation in 1892 0.00% Inflation in 1893 -1.12%

### How to Calculate Inflation Rate for £1, 1892 to 1893

This inflation calculator uses the following inflation rate formula:

CPI in 1893CPI in 1892
×
1892 GBP value
=
1893 GBP value

Then plug in historical CPI values. The UK CPI was 8.9 in the year 1892 and 8.8 in 1893:

8.88.9
×
£1
=
£0.99

£1 in 1892 has the same "purchasing power" or "buying power" as £0.99 in 1893.

To get the total inflation rate for the 1 years between 1892 and 1893, we use the following formula:

CPI in 1893 - CPI in 1892CPI in 1892
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.8 - 8.98.9
×
100
=
-1%

### News headlines from 1892

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

• Incorporation of the Coca-Cola Company in Atlanta, Georgia.
• United States Patent Office insists it was J. W. Swan who invented the electric light carbon for the incandescent lamp, rather than Thomas Edison.
• Lizzie Borden, a Sunday school teacher, is arrested for two murders.

### 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 1893 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Oct. 2019, https://www.officialdata.org/UK-inflation-rate-in-1893.

Special thanks to QuickChart for providing downloadable chart images.

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

 Average inflation rate -1.12% Converted amount (£1 base) £0.99 Price difference (£1 base) £-0.01 CPI in 1892 8.900 CPI in 1893 8.800 Inflation in 1892 0.00% Inflation in 1893 -1.12%