UK inflation rate in 1923: -6.03%

UK Inflation Calculator


Inflation in 1923 and Its Effect on Pound Value

Purchasing power increased by 6.03% in 1923 compared to 1922. On average, you would have to spend 6.03% less money in 1923 than in 1922 for the same item. This is an example of deflation.

In other words, £1 in 1922 is equivalent in purchasing power to about £0.94 in 1923.

The 1922 inflation rate was -13.85%. The inflation rate in 1923 was -6.03%. The 1923 inflation rate is lower compared to the average inflation rate of 4.36% per year between 1923 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1923 was 18.70. It was 19.90 in the previous year, 1922. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1923 CPI is less than 1922 CPI, negative inflation (also known as deflation) has occurred.

Inflation from 1922 to 1923
Average inflation rate -6.03%
Converted amount (£1 base) £0.94
Price difference (£1 base) £-0.06
CPI in 1922 19.900
CPI in 1923 18.700
Inflation in 1922 -13.85%
Inflation in 1923 -6.03%

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

How to Calculate Inflation Rate for £1, 1922 to 1923

This inflation calculator uses the following inflation rate formula:

CPI in 1923CPI in 1922
1922 GBP value
1923 GBP value

Then plug in historical CPI values. The UK CPI was 19.9 in the year 1922 and 18.7 in 1923:


£1 in 1922 has the same "purchasing power" or "buying power" as £0.94 in 1923.

To get the total inflation rate for the 1 years between 1922 and 1923, we use the following formula:

CPI in 1923 - CPI in 1922CPI in 1922
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

18.7 - 19.919.9

News headlines from 1922

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

  • Egypt is granted independence from Great Britain.
  • Mahatma Gandhi is sentenced to six years imprisonment for disobedience
  • Stalin is appointed General Secretary of the Russian Communist Party.
  • The Ottoman Empire's last sultan Mehmed VI is expelled to Malta on British warship.

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 1923 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 17 Apr. 2019,

Special thanks to QuickChart for providing downloadable chart images. is a reference website maintained by the Official Data Foundation.

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