UK inflation rate in 1949: 2.89%

UK Inflation Calculator


UK Inflation Rate, 1949-2017 (£1)

The composite price index (CPI) in 1949 was 32. 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 5.29% per year. Prices in 2017 are 3229.2% higher than prices in 1949.

In other words, £1 in the year 1949 is equivalent to £33.29 in 2017, a difference of £32.29 over 68 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 1949 to 2017
Cumulative price change 3229.21%
Average inflation rate 5.29%
Price difference (£1 base) £32.29
CPI in 1949 32
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 1949

Start with the inflation rate formula:

CPI in 2017 / CPI in 1949 * 1949 GBP value = 2017 GBP value

Then plug in historical CPI values. The UK CPI was 32 in the year 1949 and 1065.34818 in 2017:

1065.34818 / 32 * £1 = £33.29

£1 in 1949 has the same "purchasing power" as £33.29 in 2017.

News headlines from 1949

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

  • David Ben-Gurion's Mapai party wins the first Israeli election.
  • The Federal Republic of Germany, or West Germany, is created by the combination of the American, British and French occupation zones.
  • The Soviet Union ends the blockade of Berlin.
  • The People's Republic of China is proclaimed by Chinese Communist leaders.

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 1949 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Education, 12 Dec. 2017,

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