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# UK inflation rate in 1937: 3.75%

### Inflation in 1937 and Its Effect on Pound Value

Purchasing power decreased by 3.75% in 1937 compared to 1936. On average, you would have to spend 3.75% more money in 1937 than in 1936 for the same item.

In other words, £1 in 1936 is equivalent in purchasing power to about £1.04 in 1937.

The 1936 inflation rate was 0.63%. The inflation rate in 1937 was 3.75%. The 1937 inflation rate is lower compared to the average inflation rate of 5.27% per year between 1937 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1937 was 16.60. It was 16.00 in the previous year, 1936. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 3.75% Converted amount (£1 base) £1.04 Price difference (£1 base) £0.04 CPI in 1936 16.000 CPI in 1937 16.600 Inflation in 1936 0.63% Inflation in 1937 3.75%

### How to Calculate Inflation Rate for £1, 1936 to 1937

This inflation calculator uses the following inflation rate formula:

CPI in 1937CPI in 1936
×
1936 GBP value
=
1937 GBP value

Then plug in historical CPI values. The UK CPI was 16 in the year 1936 and 16.6 in 1937:

16.616
×
£1
=
£1.04

£1 in 1936 has the same "purchasing power" or "buying power" as £1.04 in 1937.

To get the total inflation rate for the 1 years between 1936 and 1937, we use the following formula:

CPI in 1937 - CPI in 1936CPI in 1936
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

16.6 - 1616
×
100
=
4%

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

• Hitler violates the Versailles treaty by sending his troops into the Rhineland.
• Spanish generals Francisco Franco and Emilio Mola begin a right wing uprising in Spain signalling the start of the Spanish Civil War.