# U.K. inflation rate in 1786: 0.00%

£

## Inflation in 1786 and its effect on pound value

Purchasing power decreased by 0.00% in 1786 compared to 1785. On average, you would have to spend 0.00% more money in 1786 than in 1785 for the same item.

In other words, £1 in 1785 is equivalent in purchasing power to about £1 in 1786.

The 1785 inflation rate was -5.26%. The inflation rate in 1786 was 0.00%. The 1786 inflation rate is lower compared to the average inflation rate of 2.19% per year between 1786 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1786 was 7.20. It was 7.20 in the previous year, 1785. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 0.00% Converted amount (£1 base) £1 Price difference (£1 base) £0.00 CPI in 1785 7.200 CPI in 1786 7.200 Inflation in 1785 -5.26% Inflation in 1786 0.00%

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

## How to Calculate Inflation Rate for £1, 1785 to 1786

Our calculations use the following inflation rate formula to calculate the change in value between 1785 and 1786:

CPI in 1786 CPI in 1785
×
1785 GBP value
=
1786 GBP value

Then plug in historical CPI values. The U.K. CPI was 7.2 in the year 1785 and 7.2 in 1786:

7.27.2
×
£1
=
£1

£1 in 1785 has the same "purchasing power" or "buying power" as £1 in 1786.

To get the total inflation rate for the 1 years between 1785 and 1786, we use the following formula:

CPI in 1786 - CPI in 1785CPI in 1785
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

7.2 - 7.27.2
×
100
=
0%

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

• The Times is published for the first time by John Walter of London
• James Hutton's theory of uniformitarianism is read in public at the Royal Society of Edinburgh.
• US currency named "dollar" and decimal coinage adopted by Congressional resolution

## 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 1786 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 May. 2020, https://www.officialdata.org/UK-inflation-rate-in-1786.