UK inflation rate in 1984: 4.98%

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UK Inflation Rate, 1984-2018 (£1)

The composite price index (CPI) in 1984 was 351.8. 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 3.40% per year. Prices in 2018 are 211.7% higher than prices in 1984.

In other words, £1 in the year 1984 is equivalent in purchasing power to £3.12 in 2018, a difference of £2.12 over 34 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 1984 to 2018
Cumulative price change 211.71%
Average inflation rate 3.40%
Price difference (£1 base) £2.12
CPI in 1984 351.8
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 1984

Start with the inflation rate formula:

CPI in 2018 / CPI in 1984 * 1984 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 351.8 in the year 1984 and 1096.59148 in 2018:

1096.59148 / 351.8 * £1 = £3.12

£1 in 1984 has the same "purchasing power" as £3.12 in 2018.


News headlines from 1984

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

  • Apple Computer Inc unveils the Macintosh personal computer.
  • Virus causing AIDS (acquired immune deficiency syndrome) is identified as HTLV-III.
  • Operation Blue Star took place as Indira Gandhi issued command to attack the Golden Temple, holiest site of Sikh's.
  • Indira Gandhi orders an attack on the Golden temple, one of the holiest sites in Sikh tradition, in an operation now called Blue Star.
  • A toxic leak in the Union Carbide factory kills 2,259 people, a further 500,000 are injured.

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 1984 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 24 Apr. 2018, http://www.in2013dollars.com/UK-inflation-rate-in-1984.


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