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# UK inflation rate in 2001: 1.77%

### Inflation in 2001 and Its Effect on Pound Value

Purchasing power decreased by 1.77% in 2001 compared to 2000. On average, you would have to spend 1.77% more money in 2001 than in 2000 for the same item.

In other words, £1 in 2000 is equivalent in purchasing power to about £1.02 in 2001.

The 2000 inflation rate was 2.96%. The inflation rate in 2001 was 1.77%. The 2001 inflation rate is lower compared to the average inflation rate of 2.79% per year between 2001 and 2019.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2001 was 683.70. It was 671.80 in the previous year, 2000. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 1.77% Converted amount (£1 base) £1.02 Price difference (£1 base) £0.02 CPI in 2000 671.800 CPI in 2001 683.700 Inflation in 2000 2.96% Inflation in 2001 1.77%

### How to Calculate Inflation Rate for £1, 2000 to 2001

This inflation calculator uses the following inflation rate formula:

CPI in 2001CPI in 2000
×
2000 GBP value
=
2001 GBP value

Then plug in historical CPI values. The UK CPI was 671.8 in the year 2000 and 683.7 in 2001:

683.7671.8
×
£1
=
£1.02

£1 in 2000 has the same "purchasing power" or "buying power" as £1.02 in 2001.

To get the total inflation rate for the 1 years between 2000 and 2001, we use the following formula:

CPI in 2001 - CPI in 2000CPI in 2000
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

683.7 - 671.8671.8
×
100
=
2%

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

• Steve Ballmer becomes CEO of Microsoft after Bill Gates steps down.
• Dot-com bubble bursts after NASDAQ Composite stock market index peaks.
• George Bush becomes President of the U.S. in a disputed election that is eventually resolved by the Supreme Court.
• Gisborne, New Zealand becomes the first city to enter the new millennium.

### 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 2001 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 15 Sep. 2019, https://www.officialdata.org/UK-inflation-rate-in-2001.