£

# UK inflation rate in 1990: 9.46%

### Inflation in 1990 and Its Effect on Pound Value

Purchasing power decreased by 9.46% in 1990 compared to 1989. On average, you would have to spend 9.46% more money in 1990 than in 1989 for the same item.

In other words, £1 in 1989 is equivalent in purchasing power to about £1.09 in 1990.

The 1989 inflation rate was 7.78%. The inflation rate in 1990 was 9.46%. The 1990 inflation rate is higher compared to the average inflation rate of 2.84% per year between 1990 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1990 was 497.50. It was 454.50 in the previous year, 1989. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 9.46% Converted amount (£1 base) £1.09 Price difference (£1 base) £0.09 CPI in 1989 454.500 CPI in 1990 497.500 Inflation in 1989 7.78% Inflation in 1990 9.46%

### How to Calculate Inflation Rate for £1, 1989 to 1990

This inflation calculator uses the following inflation rate formula:

CPI in 1990CPI in 1989
×
1989 GBP value
=
1990 GBP value

Then plug in historical CPI values. The UK CPI was 454.5 in the year 1989 and 497.5 in 1990:

497.5454.5
×
£1
=
£1.09

£1 in 1989 has the same "purchasing power" or "buying power" as £1.09 in 1990.

To get the total inflation rate for the 1 years between 1989 and 1990, we use the following formula:

CPI in 1990 - CPI in 1989CPI in 1989
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

497.5 - 454.5454.5
×
100
=
9%

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

• Chinese troops kill thousands of students protesting at Tiananmen Square.
• The first (partially) free elections take place in Poland, bringing democracy to Eastern Europe for the first time in 40 years. (Won by the Solidarity Party)
• The demolition of the Berlin Wall begins.
• Presidents George H. W. Bush and Mikhail Gorbachev declare that the Cold War has ended.

### Data Source & Citation

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 1990 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 16 Sep. 2019, https://www.officialdata.org/UK-inflation-rate-in-1990.