UK inflation rate in 1894: -1.14%

UK Inflation Calculator

£

UK Inflation Rate, 1894-2018 (£1)

The composite price index (CPI) in 1894 was 8.7. the Office for National Statistics uses this CPI value to track inflation on a monthly basis.

According to the Office for National Statistics composite price index, the pound experienced an average inflation rate of 3.98% per year. Prices in 2018 are 12504.5% higher than prices in 1894.

In other words, £1 in the year 1894 is equivalent in purchasing power to £126.04 in 2018, a difference of £125.04 over 124 years.

The current inflation rate in 2018 is 3.10%1. If this number holds, £1 today will be equivalent to £1.03 next year.

Inflation from 1894 to 2018
Cumulative price change 12504.50%
Average inflation rate 3.98%
Price difference (£1 base) £125.04
CPI in 1894 8.7
CPI in 2018 1096.59148


UK inflation chart from 1988 to 2017. Based on the UK Consumer Price Index.


How to calculate the inflation rate for £1 since 1894

Start with the inflation rate formula:

CPI in 2018 / CPI in 1894 * 1894 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 8.7 in the year 1894 and 1096.59148 in 2018:

1096.59148 / 8.7 * £1 = £126.04

£1 in 1894 has the same "purchasing power" as £126.04 in 2018.


News headlines from 1894

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

  • Thomas Edison's kinetoscope is shown to the public for the first time.
  • Initiated by Baron Pierre de Coubertin, the International Olympic Committee is founded in Paris.
  • Shibasaburo Kitasato, a Japanese scientist, discovers the cause of the Bubonic Plague and publishes his discovery in ‘The Lancet’.
  • The first ever drink driving fine, is delivered to a London taxi driver called George Smith.
  • Doctor Roux of Paris announces the creation of a diphtheria vaccine.

Inflation Data Source

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 1894 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 24 Feb. 2018, http://www.in2013dollars.com/UK-inflation-rate-in-1894.


» Read more about inflation.