UK inflation rate in 2004: 2.98%

UK Inflation Calculator


UK Inflation Rate, 2004-2018 (£1)

The composite price index (CPI) in 2004 was 736.5. 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 2.88% per year. Prices in 2018 are 48.9% higher than prices in 2004.

In other words, £1 in the year 2004 is equivalent in purchasing power to £1.49 in 2018, a difference of £0.49 over 14 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.

Inflation from 2004 to 2018
Cumulative price change 48.89%
Average inflation rate 2.88%
Price difference (£1 base) £0.49
CPI in 2004 736.5
CPI in 2018 1096.59148

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

How to calculate the inflation rate for £1 since 2004

Start with the inflation rate formula:

CPI in 2018 / CPI in 2004 * 2004 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 736.5 in the year 2004 and 1096.59148 in 2018:

1096.59148 / 736.5 * £1 = £1.49

£1 in 2004 has the same "purchasing power" as £1.49 in 2018.

News headlines from 2004

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

  • The Humanitarian Ceasefire Agreement is signed by the Sudanese government and two rebel groups.
  • Massachusetts becomes the first United States state to legalize same-sex marriage.
  • The Indonesian elections are won by Susilo Bambang Yudhoyono.

Inflation Data Source

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 2004 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 19 Apr. 2018,

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