The composite price index (CPI) in 2016 was 1037.34. It was 1020 in the previous year. This change in CPI is used by the Office for National Statistics to calculate inflation.
According to the Office for National Statistics composite price index, the pound experienced an average inflation rate of 2.90% per year. Prices in 2018 are 5.87% higher than prices in 2016.
In other words, £100 in 2016 is equivalent in purchasing power to £105.87 in 2018, a difference of £5.87 over 2 years.
The current inflation rate is now 2.20%1. If this number holds, £100 today will be equivalent to £102.20 next year.
|Cumulative price change||5.87%|
|Average inflation rate||2.90%|
|Converted amount (£100 base)||£105.87|
|Price difference (£100 base)||£5.87|
|CPI in 2016||1037.34|
|CPI in 2018||1098.27186|
This inflation calculator uses the following 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 1098.27186 in 2018:
1098.27186 / 1037.34 * £100 = £105.87
£100 in 2016 has the same "purchasing power" or "buying power" as £105.87 in 2018.
This chart shows calculations of buying power equivalence over time for £100 in 2016 (price index tracking began in 1750).
According to the Office for National Statistics, each of these GBP amounts below is equal in terms of what it could buy at the time:
|Year||GBP Value||Inflation Rate|
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 2016 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 17 Jul. 2018, https://www.officialdata.org/UK-inflation-rate-in-2016.
in2013dollars.com is a reference website maintained by the Official Data Foundation.