£

UK inflation rate in 1996: 2.41%

Inflation in 1996 and Its Effect on Pound Value

Purchasing power decreased by 2.41% in 1996 compared to 1995. On average, you would have to spend 2.41% more money in 1996 than in 1995 for the same item.

In other words, £1 in 1995 is equivalent in purchasing power to about £1.02 in 1996.

The 1995 inflation rate was 3.47%. The inflation rate in 1996 was 2.41%. The 1996 inflation rate is lower compared to the average inflation rate of 2.74% per year between 1996 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1996 was 602.40. It was 588.20 in the previous year, 1995. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.41% Converted amount (£1 base) £1.02 Price difference (£1 base) £0.02 CPI in 1995 588.200 CPI in 1996 602.400 Inflation in 1995 3.47% Inflation in 1996 2.41%

How to Calculate Inflation Rate for £1, 1995 to 1996

This inflation calculator uses the following inflation rate formula:

CPI in 1996CPI in 1995
×
1995 GBP value
=
1996 GBP value

Then plug in historical CPI values. The UK CPI was 588.2 in the year 1995 and 602.4 in 1996:

602.4588.2
×
£1
=
£1.02

£1 in 1995 has the same "purchasing power" or "buying power" as £1.02 in 1996.

To get the total inflation rate for the 1 years between 1995 and 1996, we use the following formula:

CPI in 1996 - CPI in 1995CPI in 1995
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

602.4 - 588.2588.2
×
100
=
2%

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

• Bosnian Serbs massacre over 7,000 Bosnian Muslims in Srebrenica.
• Scientists discover the Hale-Bopp Comet; which later became visible to the naked eye.
• Signing of the Dayton Agreement in Paris in order to end conflicts between former Yugoslavian republics
• 170 countries agree to the unconditional and indefinite extending of the Nuclear Non-proliferation Treaty.
• Austria, Finland and Sweden accede to the European Union.

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 1996 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 15 Sep. 2019, https://www.officialdata.org/UK-inflation-rate-in-1996.