£40,000 in 2015 → £43,199.74 in 2018

UK Inflation Calculator

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£40,000 in 2015 → £43,199.74 in 2018

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UK Inflation Rate, £40,000 in 2015 to 2018

According to the Office for National Statistics composite price index, prices in 2018 are 8.00% higher than average prices throughout 2015. The pound experienced an average inflation rate of 2.60% per year during this period, meaning the real value of a dollar decreased.

In other words, £40,000 in 2015 is equivalent in purchasing power to about £43,199.74 in 2018, a difference of £3,199.74 over 3 years.

The 2015 inflation rate was 0.99%. The inflation rate in 2018 was 2.48%. The 2018 inflation rate is higher compared to the average inflation rate of 1.80% per year between 2018 and 2019.


Inflation from 2015 to 2018
Cumulative price change 8.00%
Average inflation rate 2.60%
Converted amount (£40,000 base) £43,199.74
Price difference (£40,000 base) £3,199.74
CPI in 2015 1,020.000
CPI in 2018 1,101.593
Inflation in 2015 0.99%
Inflation in 2018 2.48%

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


Buying power of £40,000 in 2015

This chart shows calculation of buying power equivalence, often referred to as "the value of a pound" over time for £40,000 in 2015 (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 Pound Value Inflation Rate
2015 £40,000.00 0.99%
2016 £40,694.12 1.74%
2017 £42,152.94 3.58%
2018 £43,199.74 2.48%
2019 £43,977.33 1.80%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

How to Calculate Inflation Rate for £40,000, 2015 to 2018

This inflation calculator uses the following inflation rate formula:

CPI in 2018CPI in 2015
×
2015 GBP value
=
2018 GBP value

Then plug in historical CPI values. The UK CPI was 1020 in the year 2015 and 1101.59335 in 2018:

1101.593351020
×
£40,000
=
£43,199.74

£40,000 in 2015 has the same "purchasing power" or "buying power" as £43,199.74 in 2018.

To get the total inflation rate for the 3 years between 2015 and 2018, we use the following formula:

CPI in 2018 - CPI in 2015CPI in 2015
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

1101.59335 - 10201020
×
100
=
8%

News headlines from 2015

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: “£40,000 in 2015 → 2018 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 14 Dec. 2019, https://www.officialdata.org/2015-GBP-in-2018?amount=40000.

Special thanks to QuickChart for providing downloadable chart images.

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


About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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» Read more about inflation and investment.

Inflation from 2015 to 2018
Cumulative price change 8.00%
Average inflation rate 2.60%
Converted amount (£40,000 base) £43,199.74
Price difference (£40,000 base) £3,199.74
CPI in 2015 1,020.000
CPI in 2018 1,101.593
Inflation in 2015 0.99%
Inflation in 2018 2.48%
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