UK inflation rate in 1916: 18.18%

UK Inflation Calculator

£

UK Inflation Rate, 1916-2018 (£1)

The composite price index (CPI) in 1916 was 13. 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 4.44% per year. Prices in 2018 are 8335.3% higher than prices in 1916.

In other words, £1 in the year 1916 is equivalent in purchasing power to £84.35 in 2018, a difference of £83.35 over 102 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 1916 to 2018
Cumulative price change 8335.32%
Average inflation rate 4.44%
Price difference (£1 base) £83.35
CPI in 1916 13
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 1916

Start with the inflation rate formula:

CPI in 2018 / CPI in 1916 * 1916 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 13 in the year 1916 and 1096.59148 in 2018:

1096.59148 / 13 * £1 = £84.35

£1 in 1916 has the same "purchasing power" as £84.35 in 2018.


News headlines from 1916

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

  • Ottoman forces successfully defend access to Constantinople, leading to ANZAC forces withdrawal from the Gallipoli Peninsula.
  • An estimated 1 million men are killed during the Battle of Verdun.
  • The Easter Rising ends after Irish republicans abandon the post office in Dublin and surrenders.
  • Tanks known as 'Little Willies' are used for the first time at the Battle of the Somme.
  • The first aerial combat in France is won by Manfred von Richthofen, known as The Red Baron, German Luftstreitkrafte flying ace.

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 1916 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 24 Apr. 2018, http://www.in2013dollars.com/UK-inflation-rate-in-1916.


» Read more about inflation.