UK inflation rate in 2016: 1.70%

UK Inflation Calculator

£

UK Inflation Rate, 2016-2018 (£1)

The composite price index (CPI) in 2016 was 1037.34. 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 2.82% per year. Prices in 2018 are 5.7% higher than prices in 2016.

In other words, £1 in the year 2016 is equivalent in purchasing power to £1.06 in 2018, a difference of £0.06 over 2 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 2016 to 2018
Cumulative price change 5.71%
Average inflation rate 2.82%
Price difference (£1 base) £0.06
CPI in 2016 1037.34
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 2016

Start with the inflation rate formula:

CPI in 2018 / CPI in 2016 * 2016 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 1037.34 in the year 2016 and 1096.59148 in 2018:

1096.59148 / 1037.34 * £1 = £1.06

£1 in 2016 has the same "purchasing power" as £1.06 in 2018.


News headlines from 2016

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

  • The United Kingdom votes to leave the European Union in a referendum, prompting Prime Minister David Cameron to resign.
  • Donald Trump becomes the 45th President of the United States.
  • The World Health Organisation confirms the outbreak of the Zika virus.
  • Andrei Karlov, the Russian ambassador to Turkey, is assassinated.

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 2016 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 18 Jan. 2018, http://www.in2013dollars.com/UK-inflation-rate-in-2016.


» Read more about inflation.