Value of £1 from 1975 to 1974
According to the Office for National Statistics composite price index, prices in 1974 are 19.51% lower than average prices since 1975. The British pound experienced an average inflation rate of 24.24% per year during this period, causing the real value of a pound to decrease.
In other words, £1 in 1975 is equivalent in purchasing power to about £0.80 in 1974.
The 1974 inflation rate was 16.04%. The inflation rate in 1975 was 24.24%. The 1975 inflation rate is higher compared to the average inflation rate of 4.86% per year between 1975 and 2020.
⌃
| Average inflation rate | 24.24% |
| Converted amount (£1 base) | £0.80 |
| Price difference (£1 base) | £-0.20 |
| CPI in 1975 | 134.800 |
| CPI in 1974 | 108.500 |
| Inflation in 1974 | 16.04% |
| Inflation in 1975 | 24.24% |
How to Calculate Inflation Rate for £1, 1974 to 1975
Our calculations use the following inflation rate formula to calculate the change in value between 1974 and 1975:
CPI in 1974
CPI in 1975
×
1975 GBP value
=
1974 GBP value
Then plug in historical CPI values. The U.K. CPI was 134.8 in the year 1975 and 108.5 in 1974:
108.5134.8
×
£1
=
£0.80
£1 in 1975 has the same "purchasing power" or "buying power" as £0.80 in 1974.
To get the total inflation rate for the 1 years between 1974 and 1975, we use the following formula:
CPI in 1974 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
108.5 - 134.8134.8
×
100
=
-20%
News headlines from 1974
Politics and news often influence economic performance. Here's what was happening at the time:
- Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
- Ethiopia abrogates its 3,000-year-old monarchy.
- Bill Gates and Paul Allen found Microsoft.
- The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
- Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).
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: “£1 in 1975 → 1974 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 16 Jul. 2020, https://www.officialdata.org/1975-GBP-in-1974?amount=1.
Special thanks to QuickChart for their chart image API, which is used for chart downloads.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Average inflation rate | 24.24% |
| Converted amount (£1 base) | £0.80 |
| Price difference (£1 base) | £-0.20 |
| CPI in 1975 | 134.800 |
| CPI in 1974 | 108.500 |
| Inflation in 1974 | 16.04% |
| Inflation in 1975 | 24.24% |