UK inflation rate in 1995: 3.47%

UK Inflation Calculator

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Inflation in 1995 and Its Effect on Pound Value

Purchasing power decreased by 3.47% in 1995 compared to the previous year, 1994. On average, you would have to spend 3.47% more money in 1995 than in 1994 for the same item.

In other words, £1 in 1994 is equivalent in purchasing power to £1.03 in 1995.

The 1994 inflation rate was 2.41%. The inflation rate in 1995 was 3.47%. The 1995 inflation rate is higher compared to the average inflation rate of 2.75% per year between 1995 and 2018.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1995 was 588.2. It was 568.5 in the previous year, 1994. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.


Inflation from 1994 to 1995
Average inflation rate 3.47%
Converted amount (£1 base) £1.03
Price difference (£1 base) £0.03
CPI in 1994 568.500
CPI in 1995 588.200
Inflation in 1994 2.41%
Inflation in 1995 3.47%


UK inflation chart from 1988 to 2017. Based on the UK Consumer Price Index.


How to Calculate Inflation Rate for £1, 1994 to 1995

This inflation calculator uses the following inflation rate formula:

CPI in 1995CPI in 1994
×
1994 GBP value
=
1995 GBP value

Then plug in historical CPI values. The UK CPI was 568.5 in the year 1994 and 588.2 in 1995:

588.2568.5
×
£1
=
£1.03

£1 in 1994 has the same "purchasing power" or "buying power" as £1.03 in 1995.

To get the total inflation rate for the 1 years between 1994 and 1995, we use the following formula:

CPI in 1995 - CPI in 1994CPI in 1994
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

588.2 - 568.5568.5
×
100
=
3%

News headlines from 1994

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

  • The Rwandan Genocide begins as an aircraft is shot down while carrying Rwandan and Burundian presidents, Juvenal Habyarimana and Cyprien Ntaryamira.
  • Nelson Mandela becomes South Africa's first black president.
  • The IRA declares a ceasefire.
  • Guantanamo Naval Base is re-opened for refugee processing.

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 1995 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 18 Dec. 2018, https://www.officialdata.org/UK-inflation-rate-in-1995.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


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