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£1 in 2015 → £1.05 in 2017

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U.K. Inflation Rate, £1 in 2015 to 2017

According to the Office for National Statistics composite price index, prices in 2017 are 5.38% higher than average prices since 2015. The British pound experienced an average inflation rate of 2.66% per year during this period, meaning the real value of a pound decreased.

In other words, £1 in 2015 is equivalent in purchasing power to about £1.05 in 2017, a difference of £0.05 over 2 years.

The 2015 inflation rate was 0.99%. The inflation rate in 2017 was 3.58%. The 2017 inflation rate is higher compared to the average inflation rate of 1.93% per year between 2017 and 2020.

 Cumulative price change 5.38% Average inflation rate 2.66% Converted amount (£1 base) £1.05 Price difference (£1 base) £0.05 CPI in 2015 1,020.000 CPI in 2017 1,074.900 Inflation in 2015 0.99% Inflation in 2017 3.58%

GBP Inflation since 1750
Annual Rate, the Office for National Statistics CPI

Buying power of £1 in 2015

This chart shows a calculation of buying power equivalence for £1 in 2015 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £1.05 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £1.05 over time, that means that the "real value" of a single U.K. pound decreases over time. In other words, a pound will pay for fewer items at the store.

This effect explains how inflation erodes the value of a pound over time. By calculating the value in 2015 dollars, the chart below shows how £1 buys less over the past 2 years.

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 Pound Value Inflation Rate
2015 £1.00 0.99%
2016 £1.02 1.74%
2017 £1.05 3.58%
2018 £1.08 2.48%
2019 £1.10 1.80%
2020 £1.12 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

How to Calculate Inflation Rate for £1, 2015 to 2017

This inflation calculator uses the following inflation rate formula:

CPI in 2017CPI in 2015
×
2015 GBP value
=
2017 GBP value

Then plug in historical CPI values. The U.K. CPI was 1020 in the year 2015 and 1074.9 in 2017:

1074.91020
×
£1
=
£1.05

£1 in 2015 has the same "purchasing power" or "buying power" as £1.05 in 2017.

To get the total inflation rate for the 2 years between 2015 and 2017, we use the following formula:

CPI in 2017 - CPI in 2015CPI in 2015
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

1074.9 - 10201020
×
100
=
5%

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

• Barack Obama and Raul Castro, hold the first meeting between Cuban and American leaders since the Cuban Revolution.
• The population of India reaches 1 billion (officially). The billionth baby was named Astha Arora.
• Donald Trump announces his intention to join the US presidential campaign.
• China brings an end to its one child policy, 35 years after it was first introduced.

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 2015 → 2017 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 Jan. 2020, https://www.officialdata.org/2015-GBP-in-2017?amount=1.