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# U.K. inflation rate in 1874: -3.85%

### Inflation in 1874 and Its Effect on Pound Value

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.

In other words, £1 in 1873 is equivalent in purchasing power to about £0.96 in 1874.

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 3.30% per year between 1874 and 2020.

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%

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

### How to Calculate Inflation Rate for £1, 1873 to 1874

This inflation calculator uses the following inflation rate formula:

CPI in 1874CPI 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%

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, 26 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1874.

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

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.

 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%