Purchasing power decreased by 2.98% in 2004 compared to the previous year, 2003. On average, you would have to spend 2.98% more money in 2004 than in 2003 for the same item.
In other words, £1 in 2003 is equivalent in purchasing power to £1.03 in 2004.
The 2003 inflation rate was 2.89%. The inflation rate in 2004 was 2.98%. The 2004 inflation rate is higher compared to the average inflation rate of 2.84% per year between 2004 and 2019.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2004 was 736.5. It was 715.2 in the previous year, 2003. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
|Average inflation rate||2.98%|
|Converted amount (£1 base)||£1.03|
|Price difference (£1 base)||£0.03|
|CPI in 2003||715.200|
|CPI in 2004||736.500|
|Inflation in 2003||2.89%|
|Inflation in 2004||2.98%|
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The UK CPI was 715.2 in the year 2003 and 736.5 in 2004:
£1 in 2003 has the same "purchasing power" or "buying power" as £1.03 in 2004.
To get the total inflation rate for the 1 years between 2003 and 2004, we use the following formula:
Plugging in the values to this equation, we get:
Politics and news often influence economic performance. Here's what was happening at the time:
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.” U.S. Official Inflation Data, Alioth Finance, 17 Feb. 2019, https://www.officialdata.org/UK-inflation-rate-in-2004.
in2013dollars.com is a reference website maintained by the Official Data Foundation.