Purchasing power decreased by 16.04% in 1974 compared to the previous year, 1973. On average, you would have to spend 16.04% more money in 1974 than in 1973 for the same item.
In other words, £1 in 1973 is equivalent in purchasing power to £1.16 in 1974.
The 1973 inflation rate was 9.10%. The inflation rate in 1974 was 16.04%. The 1974 inflation rate is higher compared to the average inflation rate of 5.40% per year between 1974 and 2018.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1974 was 108.5. It was 93.5 in the previous year, 1973. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
|Average inflation rate||16.04%|
|Converted amount (£1 base)||£1.16|
|Price difference (£1 base)||£0.16|
|CPI in 1973||93.500|
|CPI in 1974||108.500|
|Inflation in 1973||9.10%|
|Inflation in 1974||16.04%|
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The UK CPI was 93.5 in the year 1973 and 108.5 in 1974:
£1 in 1973 has the same "purchasing power" or "buying power" as £1.16 in 1974.
To get the total inflation rate for the 1 years between 1973 and 1974, we use the following formula:
Plugging in the values to this equation, we get:
Politics and news often influence economic performance. Here's what was happening at the time:
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.” U.S. Official Inflation Data, Alioth Finance, 13 Dec. 2018, https://www.officialdata.org/UK-inflation-rate-in-1974.
in2013dollars.com is a reference website maintained by the Official Data Foundation.