UK inflation rate in 1923: -6.03%

UK Inflation Calculator


UK Inflation Rate, 1923-2018 (£1)

The composite price index (CPI) in 1923 was 18.7. 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 4.38% per year. Prices in 2018 are 5764.1% higher than prices in 1923.

In other words, £1 in the year 1923 is equivalent in purchasing power to £58.64 in 2018, a difference of £57.64 over 95 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 1923 to 2018
Cumulative price change 5764.13%
Average inflation rate 4.38%
Price difference (£1 base) £57.64
CPI in 1923 18.7
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 1923

Start with the inflation rate formula:

CPI in 2018 / CPI in 1923 * 1923 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 18.7 in the year 1923 and 1096.59148 in 2018:

1096.59148 / 18.7 * £1 = £58.64

£1 in 1923 has the same "purchasing power" as £58.64 in 2018.

News headlines from 1923

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

  • The inner burial chamber of the Pharaoh Tutankhamun's tomb is opened, leading to the finding of the sarcophagus by Howard Carter.
  • The Disney Brothers Cartoon Studio is founded.
  • Lenin's "Political Testament" is issued which calls for Stalin's removal.
  • In Germany, 5,000 storm troopers demonstrate against the 'November crime', Hitler is arrested after seeking to take advantage of the chaotic conditions.

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 1923 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 18 Apr. 2018,

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