Purchasing power increased by 0.54% in 1926 compared to 1925. On average, you would have to spend 0.54% less money in 1926 than in 1925 for the same item. This is an example of deflation.
In other words, £1 in 1925 is equivalent in purchasing power to about £0.99 in 1926.
The 1925 inflation rate was 0.00%. The inflation rate in 1926 was -0.54%. The 1926 inflation rate is lower compared to the average inflation rate of 4.51% per year between 1926 and 2019.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1926 was 18.50. It was 18.60 in the previous year, 1925. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1926 CPI is less than 1925 CPI, negative inflation (also known as deflation) has occurred.
|Average inflation rate||-0.54%|
|Converted amount (£1 base)||£0.99|
|Price difference (£1 base)||£-0.01|
|CPI in 1925||18.600|
|CPI in 1926||18.500|
|Inflation in 1925||0.00%|
|Inflation in 1926||-0.54%|
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The UK CPI was 18.6 in the year 1925 and 18.5 in 1926:
£1 in 1925 has the same "purchasing power" or "buying power" as £0.99 in 1926.
To get the total inflation rate for the 1 years between 1925 and 1926, we use the following formula:
Plugging in the values to this equation, we get:
Politics and news often influence economic performance. Here's what was happening at the time:
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 1926 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 18 Jul. 2019, https://www.officialdata.org/UK-inflation-rate-in-1926.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.