UK inflation rate in 1985: 6.08%

UK Inflation Calculator


UK Inflation Rate, 1985-2018 (£1)

The composite price index (CPI) in 1985 was 373.2. 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 3.32% per year. Prices in 2018 are 193.8% higher than prices in 1985.

In other words, £1 in the year 1985 is equivalent in purchasing power to £2.94 in 2018, a difference of £1.94 over 33 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 1985 to 2018
Cumulative price change 193.83%
Average inflation rate 3.32%
Price difference (£1 base) £1.94
CPI in 1985 373.2
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 1985

Start with the inflation rate formula:

CPI in 2018 / CPI in 1985 * 1985 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 373.2 in the year 1985 and 1096.59148 in 2018:

1096.59148 / 373.2 * £1 = £2.94

£1 in 1985 has the same "purchasing power" as £2.94 in 2018.

News headlines from 1985

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

  • Mikhail Gorbachev replaces Konstantin Chernenko as leader of the Soviet Union.
  • Earthquake with a magnitude of 8.1 rocks Mexico City and kills 10,000 people, leaving over 250,000 homeless.
  • Mikhail Gorbachev (leader of the Soviet Union) and Ronald Reagan (President of the United States) meet for the first time.
  • Ernie Wise makes the first mobile phone call in the UK.

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 1985 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 18 Apr. 2018,

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