Inflation in 1874 and its effect on pound value
£1 in 1873 is equivalent in purchasing power to about £0.96 in 1874. The pound had an average deflation rate of -3.85% per year since 1873, producing a cumulative price change of -3.85%. Purchasing power increased by 3.85% in 1874 compared to 1873. On average, you would have to spend 3.85% less money in 1874 than in 1873 for the same item. This is an example of deflation.
This means that prices in 1874 are 3.85% lower than average prices since 1873, according to the Office for National Statistics composite price index.
The 1873 inflation rate was 4.00%. The inflation rate in 1874 was -3.85%. The 1874 inflation rate is lower compared to the average inflation rate of 3.29% per year between 1874 and 2021.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1874 was 10.00. It was 10.40 in the previous year, 1873. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1874 CPI is less than 1873 CPI, negative inflation (also known as deflation) has occurred.
⌃
| Average inflation rate | -3.85% |
| Converted amount (£1 base) | £0.96 |
| Price difference (£1 base) | £-0.04 |
| CPI in 1873 | 10.400 |
| CPI in 1874 | 10.000 |
| Inflation in 1873 | 4.00% |
| Inflation in 1874 | -3.85% |
| £1 in 1873 | £0.96 in 1874 |
How to Calculate Inflation Rate for £1, 1873 to 1874
Our calculations use the following inflation rate formula to calculate the change in value between 1873 and 1874:
CPI in 1874
CPI in 1873
×
1873 GBP value
=
1874 GBP value
Then plug in historical CPI values. The U.K. CPI was 10.4 in the year 1873 and 10 in 1874:
1010.4
×
£1
=
£0.96
£1 in 1873 has the same "purchasing power" or "buying power" as £0.96 in 1874.
To get the total inflation rate for the 1 years between 1873 and 1874, we use the following formula:
CPI in 1874 - CPI in 1873CPI in 1873
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
10 - 10.410.4
×
100
=
-4%
News headlines from 1873
Politics and news often influence economic performance. Here's what was happening at the time:
- The first Battle of the Stronghold takes place where the US Army is defeated by a group of Modoc warriors.
- John Morseby discovers the site of Port Moresby, Papua New Guinea and claims it for Britain.
- Sultan Bargash closes the slave market of Zanzibar.
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 1874 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 15 May. 2021, https://www.officialdata.org/UK-inflation-rate-in-1874.
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 | -3.85% |
| Converted amount (£1 base) | £0.96 |
| Price difference (£1 base) | £-0.04 |
| CPI in 1873 | 10.400 |
| CPI in 1874 | 10.000 |
| Inflation in 1873 | 4.00% |
| Inflation in 1874 | -3.85% |
| £1 in 1873 | £0.96 in 1874 |