# U.K. inflation rate in 1847: 12.37%

£

## Inflation in 1847 and its effect on pound value

Purchasing power decreased by 12.37% in 1847 compared to 1846. On average, you would have to spend 12.37% more money in 1847 than in 1846 for the same item.

In other words, £1 in 1846 is equivalent in purchasing power to about £1.12 in 1847.

The 1846 inflation rate was 4.30%. The inflation rate in 1847 was 12.37%. The 1847 inflation rate is higher compared to the average inflation rate of 2.72% per year between 1847 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1847 was 10.90. It was 9.70 in the previous year, 1846. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 12.37% Converted amount (£1 base) £1.12 Price difference (£1 base) £0.12 CPI in 1846 9.700 CPI in 1847 10.900 Inflation in 1846 4.30% Inflation in 1847 12.37%

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

## How to Calculate Inflation Rate for £1, 1846 to 1847

Our calculations use the following inflation rate formula to calculate the change in value between 1846 and 1847:

CPI in 1847 CPI in 1846
×
1846 GBP value
=
1847 GBP value

Then plug in historical CPI values. The U.K. CPI was 9.7 in the year 1846 and 10.9 in 1847:

10.99.7
×
£1
=
£1.12

£1 in 1846 has the same "purchasing power" or "buying power" as £1.12 in 1847.

To get the total inflation rate for the 1 years between 1846 and 1847, we use the following formula:

CPI in 1847 - CPI in 1846CPI in 1846
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10.9 - 9.79.7
×
100
=
12%

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

• Mexican-American war begins over conflict about the Texas border.
• Smithsonian Institution established by an Act of Congress.
• American dentist Dr William Morton used anaesthetic for the first time, while extracting a tooth.
• Michigan abolishes the death penalty for all crimes except treason.

## 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 1847 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 May. 2020, https://www.officialdata.org/UK-inflation-rate-in-1847.