UK inflation rate in 1946: 3.05%

UK Inflation Calculator

£

Inflation in 1946 and Its Effect on Pound Value

Purchasing power decreased by 3.05% in 1946 compared to the previous year, 1945. On average, you would have to spend 3.05% more money in 1946 than in 1945 for the same item.

In other words, £1 in 1945 is equivalent in purchasing power to £1.03 in 1946.

The 1945 inflation rate was 2.75%. The inflation rate in 1946 was 3.05%. The 1946 inflation rate is lower compared to the average inflation rate of 5.28% per year between 1946 and 2018.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1946 was 27. It was 26.2 in the previous year, 1945. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.


Inflation from 1945 to 1946
Average inflation rate 3.05%
Converted amount (£1 base) £1.03
Price difference (£1 base) £0.03
CPI in 1945 26.200
CPI in 1946 27.000
Inflation in 1945 2.75%
Inflation in 1946 3.05%


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


How to Calculate Inflation Rate for £1, 1945 to 1946

This inflation calculator uses the following inflation rate formula:

CPI in 1946CPI in 1945
×
1945 GBP value
=
1946 GBP value

Then plug in historical CPI values. The UK CPI was 26.2 in the year 1945 and 27 in 1946:

2726.2
×
£1
=
£1.03

£1 in 1945 has the same "purchasing power" or "buying power" as £1.03 in 1946.

To get the total inflation rate for the 1 years between 1945 and 1946, we use the following formula:

CPI in 1946 - CPI in 1945CPI in 1945
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

27 - 26.226.2
×
100
=
3%

News headlines from 1945

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

  • The USSR captures Budapest from Germany in a battle that kills 159,000 people.
  • The US Fleet captures Iwo Jima.
  • 1,500 US Navy ships bomb Okinawa: the operation is believed to be the largest of World War II
  • Iwo Jima is occupied by America, costing 6,000 American lives and a further 18,000 Japanese lives.
  • Buchenwald, the first Nazi concentration camp, is liberated.

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 1946 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 9 Dec. 2018, https://www.officialdata.org/UK-inflation-rate-in-1946.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


» Read more about inflation and investment.