The composite price index (CPI) in 1986 was 385.9. 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 184.2% higher than prices in 1986.

In other words, £1 in the year 1986 is equivalent in purchasing power to £2.84 in 2018, a difference of £1.84 over 32 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 | 184.16% |

Average inflation rate | 3.32% |

Price difference (£1 base) | £1.84 |

CPI in 1986 | 385.9 |

CPI in 2018 | 1096.59148 |

CPI in 2018 / CPI in 1986 * 1986 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 385.9 in the year 1986 and 1096.59148 in 2018:

1096.59148 / 385.9 * £1 =

£1 in 1986 has the same "purchasing power" as £2.84 in 2018.

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

- Ferdinand Marcos becomes president of the Philippines after rigged elections.
- 6.5 million People hold hands across the US in an event referred to as Hands Across America.
- Doctors announce that the drug AZT will be available to AIDS patients.
- Talks between Ronald Reagan and Mikhail Gorbachev begin at the Reykjavik summit.
- Mrs. Davina Thompson receives the first heart, lung and liver transplant in Cambridge, England.

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 1986 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 19 Apr. 2018, http://www.in2013dollars.com/UK-inflation-rate-in-1986.