UK inflation rate in 1895: -1.15%

UK Inflation Calculator

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Inflation in 1895 and Its Effect on Pound Value

Purchasing power increased by 1.15% in 1895 compared to the previous year, 1894. On average, you would have to spend 1.15% less money in 1895 than in 1894 for the same item. This is an example of deflation.

In other words, £1 in 1894 is equivalent in purchasing power to £0.99 in 1895.

The 1894 inflation rate was -1.14%. The inflation rate in 1895 was -1.15%. The 1895 inflation rate is lower compared to the average inflation rate of 4.02% per year between 1895 and 2018.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1895 was 8.6. It was 8.7 in the previous year, 1894. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1895 CPI is less than 1894 CPI, negative inflation (also known as deflation) has occurred.


Inflation from 1894 to 1895
Average inflation rate -1.15%
Converted amount (£1 base) £0.99
Price difference (£1 base) £-0.01
CPI in 1894 8.700
CPI in 1895 8.600
Inflation in 1894 -1.14%
Inflation in 1895 -1.15%


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


How to Calculate Inflation Rate for £1, 1894 to 1895

This inflation calculator uses the following inflation rate formula:

CPI in 1895CPI in 1894
×
1894 GBP value
=
1895 GBP value

Then plug in historical CPI values. The UK CPI was 8.7 in the year 1894 and 8.6 in 1895:

8.68.7
×
£1
=
£0.99

£1 in 1894 has the same "purchasing power" or "buying power" as £0.99 in 1895.

To get the total inflation rate for the 1 years between 1894 and 1895, we use the following formula:

CPI in 1895 - CPI in 1894CPI in 1894
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.6 - 8.78.7
×
100
=
-1%

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.

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 1895 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 14 Nov. 2018, https://www.officialdata.org/UK-inflation-rate-in-1895.

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


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