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# U.K. inflation rate in 1875: -2.00%

### Inflation in 1875 and Its Effect on Pound Value

Purchasing power increased by 2.00% in 1875 compared to 1874. On average, you would have to spend 2.00% less money in 1875 than in 1874 for the same item. This is an example of deflation.

In other words, £1 in 1874 is equivalent in purchasing power to about £0.98 in 1875.

The 1874 inflation rate was -3.85%. The inflation rate in 1875 was -2.00%. The 1875 inflation rate is lower compared to the average inflation rate of 3.33% per year between 1875 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1875 was 9.80. It was 10.00 in the previous year, 1874. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1875 CPI is less than 1874 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -2.00% Converted amount (£1 base) £0.98 Price difference (£1 base) £-0.02 CPI in 1874 10.000 CPI in 1875 9.800 Inflation in 1874 -3.85% Inflation in 1875 -2.00%

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

### How to Calculate Inflation Rate for £1, 1874 to 1875

This inflation calculator uses the following inflation rate formula:

CPI in 1875CPI in 1874
×
1874 GBP value
=
1875 GBP value

Then plug in historical CPI values. The U.K. CPI was 10 in the year 1874 and 9.8 in 1875:

9.810
×
£1
=
£0.98

£1 in 1874 has the same "purchasing power" or "buying power" as £0.98 in 1875.

To get the total inflation rate for the 1 years between 1874 and 1875, we use the following formula:

CPI in 1875 - CPI in 1874CPI in 1874
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.8 - 1010
×
100
=
-2%

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

• Opening of the first civic public park, Birkenhead Park, designed by Joseph Paxton in Birkenhead, England.
• A Train robbery at Gads Hill, Missouri, is performed by Jesse James’ gang.
• Benjamin Disraeli becomes the British Prime Minister, succeeding William Gladstone.

### 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 1875 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1875.