Inflation in 1784 and its effect on pound value
£1 in 1783 is equivalent in purchasing power to about £1.01 in 1784. The pound had an average inflation rate of 1.33% per year between 1783 and 1784, producing a cumulative price increase of 1.33%. Purchasing power decreased by 1.33% in 1784 compared to 1783. On average, you would have to spend 1.33% more money in 1784 than in 1783 for the same item.
This means that prices in 1784 are 1.01 times higher than average prices since 1783, according to the Office for National Statistics composite price index.
The 1783 inflation rate was 11.94%. The inflation rate in 1784 was 1.33%. The 1784 inflation rate is lower compared to the average inflation rate of 2.14% per year between 1784 and 2021.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1784 was 7.60. It was 7.50 in the previous year, 1783. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
⌃
| Average inflation rate | 1.33% |
| Converted amount (£1 base) | £1.01 |
| Price difference (£1 base) | £0.01 |
| CPI in 1783 | 7.500 |
| CPI in 1784 | 7.600 |
| Inflation in 1783 | 11.94% |
| Inflation in 1784 | 1.33% |
| £1 in 1783 | £1.01 in 1784 |
How to Calculate Inflation Rate for £1, 1783 to 1784
Our calculations use the following inflation rate formula to calculate the change in value between 1783 and 1784:
CPI in 1784
CPI in 1783
×
1783 GBP value
=
1784 GBP value
Then plug in historical CPI values. The U.K. CPI was 7.5 in the year 1783 and 7.6 in 1784:
7.67.5
×
£1
=
£1.01
£1 in 1783 has the same "purchasing power" or "buying power" as £1.01 in 1784.
To get the total inflation rate for the 1 years between 1783 and 1784, we use the following formula:
CPI in 1784 - CPI in 1783CPI in 1783
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
7.6 - 7.57.5
×
100
=
1%
News headlines from 1783
Politics and news often influence economic performance. Here's what was happening at the time:
- George Washington makes a speech asking officers not to support and take part in the Newburgh Conspiracy, preventing a potential coup d'etat.
- Britain gets its youngest Prime Minister, William Pitt the Younger, who was 24 at the time.
- Hostilities formally cease in the American Revolutionary War
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: “Inflation Rate in 1784 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 7 May. 2021, https://www.officialdata.org/UK-inflation-rate-in-1784.
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 | 1.33% |
| Converted amount (£1 base) | £1.01 |
| Price difference (£1 base) | £0.01 |
| CPI in 1783 | 7.500 |
| CPI in 1784 | 7.600 |
| Inflation in 1783 | 11.94% |
| Inflation in 1784 | 1.33% |
| £1 in 1783 | £1.01 in 1784 |