UK Inflation Calculator
UK Inflation Rate, 1983-2018 (£1)
The composite price index (CPI) in 1983 was 335.1. 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 3.45% per year. Prices in 2018 are 227.2% higher than prices in 1983.
In other words, £1 in the year 1983 is equivalent in purchasing power to £3.27 in 2018, a difference of £2.27 over 35 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.
| Cumulative price change | 227.24% |
| Average inflation rate | 3.45% |
| Price difference (£1 base) | £2.27 |
| CPI in 1983 | 335.1 |
| CPI in 2018 | 1096.59148 |
How to calculate the inflation rate for £1 since 1983
Start with the inflation rate formula:CPI in 2018 / CPI in 1983 * 1983 GBP value = 2018 GBP value
Then plug in historical CPI values. The UK CPI was 335.1 in the year 1983 and 1096.59148 in 2018:
1096.59148 / 335.1 * £1 = £3.27
£1 in 1983 has the same "purchasing power" as £3.27 in 2018.
News headlines from 1983
Politics and news often influence economic performance. Here's what was happening at the time:
- 26 million pounds in gold, diamonds and cash is stolen from Brink's-Mat warehouse at Heathrow Airport in London, which is considered to be one of the world's greatest robberies.
- Ronald Reagan ends the United States embargo against Guatemala.
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 1983 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 22 Apr. 2018, http://www.in2013dollars.com/UK-inflation-rate-in-1983.