UK inflation rate in 1974: 16.04%

UK Inflation Calculator


UK Inflation Rate, 1974-2018 (£1)

The composite price index (CPI) in 1974 was 108.5. the Office for National Statistics uses this CPI value to track inflation on a monthly basis.

According to the Office for National Statistics composite price index, the pound experienced an average inflation rate of 5.40% per year. Prices in 2018 are 910.7% higher than prices in 1974.

In other words, £1 in the year 1974 is equivalent in purchasing power to £10.11 in 2018, a difference of £9.11 over 44 years.

The current inflation rate in 2018 is 3.10%1. If this number holds, £1 today will be equivalent to £1.03 next year.

Inflation from 1974 to 2018
Cumulative price change 910.68%
Average inflation rate 5.40%
Price difference (£1 base) £9.11
CPI in 1974 108.5
CPI in 2018 1096.59148

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

How to calculate the inflation rate for £1 since 1974

Start with the inflation rate formula:

CPI in 2018 / CPI in 1974 * 1974 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 108.5 in the year 1974 and 1096.59148 in 2018:

1096.59148 / 108.5 * £1 = £10.11

£1 in 1974 has the same "purchasing power" as £10.11 in 2018.

News headlines from 1974

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

  • Ayatollah Khomeini, appeals for an Islamic republic of Iran.
  • The 1,000th victim of the Northern Ireland conflict between republican and loyalist paramilitaries is taken.
  • President Richard Nixon announces his resignation.

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 1974 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 18 Apr. 2018,

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