UK inflation rate in 2008: 3.99%

UK Inflation Calculator

£

Inflation in 2008 and Its Effect on Pound Value

Purchasing power decreased by 3.99% in 2008 compared to the previous year, 2007. On average, you would have to spend 3.99% more money in 2008 than in 2007 for the same item.

In other words, £1 in 2007 is equivalent in purchasing power to £1.04 in 2008.

The 2007 inflation rate was 4.29%. The inflation rate in 2008 was 3.99%. The 2008 inflation rate is higher compared to the average inflation rate of 2.63% per year between 2008 and 2018.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2008 was 847.5. It was 815 in the previous year, 2007. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.


Inflation from 2007 to 2008
Average inflation rate 3.99%
Converted amount (£1 base) £1.04
Price difference (£1 base) £0.04
CPI in 2007 815.000
CPI in 2008 847.500
Inflation in 2007 4.29%
Inflation in 2008 3.99%


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


How to Calculate Inflation Rate for £1, 2007 to 2008

This inflation calculator uses the following inflation rate formula:

CPI in 2008CPI in 2007
×
2007 GBP value
=
2008 GBP value

Then plug in historical CPI values. The UK CPI was 815 in the year 2007 and 847.5 in 2008:

847.5815
×
£1
=
£1.04

£1 in 2007 has the same "purchasing power" or "buying power" as £1.04 in 2008.

To get the total inflation rate for the 1 years between 2007 and 2008, we use the following formula:

CPI in 2008 - CPI in 2007CPI in 2007
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

847.5 - 815815
×
100
=
4%

News headlines from 2007

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

  • The British Army withdraws from Northern Ireland, marking the end of, operation Banner - the longest operation in British military history.
  • The South Korean President enters North Korea, crossing the Military Demarcation Line, to the second Inter-Korean Summit with the leader of North Korea.
  • Bulgaria and Romania join the European Union. Aside from Irish, languages of the two countries become official EU languages, amongst 20 others.
  • Slovenia becomes the 13th Eurozone country, after adopting the Euro currency.

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 2008 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 16 Dec. 2018, https://www.officialdata.org/UK-inflation-rate-in-2008.

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


» Read more about inflation and investment.