UK inflation rate in 2007: 4.29%

UK Inflation Calculator

£

Inflation in 2007 and Its Effect on Pound Value

Purchasing power decreased by 4.29% in 2007 compared to the previous year, 2006. On average, you would have to spend 4.29% more money in 2007 than in 2006 for the same item.

In other words, £1 in 2006 is equivalent in purchasing power to £1.04 in 2007.

The 2006 inflation rate was 3.20%. The inflation rate in 2007 was 4.29%. The 2007 inflation rate is higher compared to the average inflation rate of 2.75% per year between 2007 and 2018.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2007 was 815. It was 781.5 in the previous year, 2006. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.


Inflation from 2006 to 2007
Average inflation rate 4.29%
Converted amount (£1 base) £1.04
Price difference (£1 base) £0.04
CPI in 2006 781.500
CPI in 2007 815.000
Inflation in 2006 3.20%
Inflation in 2007 4.29%


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


How to Calculate Inflation Rate for £1, 2006 to 2007

This inflation calculator uses the following inflation rate formula:

CPI in 2007CPI in 2006
×
2006 GBP value
=
2007 GBP value

Then plug in historical CPI values. The UK CPI was 781.5 in the year 2006 and 815 in 2007:

815781.5
×
£1
=
£1.04

£1 in 2006 has the same "purchasing power" or "buying power" as £1.04 in 2007.

To get the total inflation rate for the 1 years between 2006 and 2007, we use the following formula:

CPI in 2007 - CPI in 2006CPI in 2006
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

815 - 781.5781.5
×
100
=
4%

News headlines from 2006

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

  • Nepali security forces injure 243 pro-democracy protesters.
  • North Kora is alleged to have tested its first nuclear device.

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 2007 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Dec. 2018, https://www.officialdata.org/UK-inflation-rate-in-2007.

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


» Read more about inflation and investment.