UK inflation rate in 1946: 3.05%

UK Inflation Calculator


UK Inflation Rate, 1946-2017 (£1)

The composite price index (CPI) in 1946 was 27. the Office for National Statistics uses this CPI value to track inflation on a monthly basis.

According to the Office for National Statistics, the pound experienced an average inflation rate of 5.31% per year. Prices in 2017 are 3845.7% higher than prices in 1946.

In other words, £1 in the year 1946 is equivalent to £39.46 in 2017, a difference of £38.46 over 71 years.

The current inflation rate in 2017 is 2.70%1. If this number holds, £1 today will be equivalent to £1.03 next year.

Inflation from 1946 to 2017
Cumulative price change 3845.73%
Average inflation rate 5.31%
Price difference (£1 base) £38.46
CPI in 1946 27
CPI in 2017 1065.34818

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

How to calculate the inflation rate for £1 since 1946

Start with the inflation rate formula:

CPI in 2017 / CPI in 1946 * 1946 GBP value = 2017 GBP value

Then plug in historical CPI values. The UK CPI was 27 in the year 1946 and 1065.34818 in 2017:

1065.34818 / 27 * £1 = £39.46

£1 in 1946 has the same "purchasing power" as £39.46 in 2017.

News headlines from 1946

Politics and news often play an important role in economic performance.

  • The United Nations General Assembly meets for the first time in London.
  • President Harry Truman sets up the Central Intelligence Agency or CIA.
  • The US State Department releases the Acheson-Lilenthal Report outlining a plan for how the US can limit nuclear power internationally, marking the beginning of Cold War.
  • Twenty-two Nazi leaders found guilty of war crimes, during the Nuremburg trials.

Inflation Data Source: This calculator uses 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.

» Read more about inflation.