£

U.K. inflation rate in 1878: -2.06%

Inflation in 1878 and Its Effect on Pound Value

Purchasing power increased by 2.06% in 1878 compared to 1877. On average, you would have to spend 2.06% less money in 1878 than in 1877 for the same item. This is an example of deflation.

In other words, £1 in 1877 is equivalent in purchasing power to about £0.98 in 1878.

The 1877 inflation rate was -1.02%. The inflation rate in 1878 was -2.06%. The 1878 inflation rate is lower compared to the average inflation rate of 3.43% per year between 1878 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1878 was 9.50. It was 9.70 in the previous year, 1877. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1878 CPI is less than 1877 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -2.06% Converted amount (£1 base) £0.98 Price difference (£1 base) £-0.02 CPI in 1877 9.700 CPI in 1878 9.500 Inflation in 1877 -1.02% Inflation in 1878 -2.06%

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

How to Calculate Inflation Rate for £1, 1877 to 1878

This inflation calculator uses the following inflation rate formula:

CPI in 1878CPI in 1877
×
1877 GBP value
=
1878 GBP value

Then plug in historical CPI values. The U.K. CPI was 9.7 in the year 1877 and 9.5 in 1878:

9.59.7
×
£1
=
£0.98

£1 in 1877 has the same "purchasing power" or "buying power" as £0.98 in 1878.

To get the total inflation rate for the 1 years between 1877 and 1878, we use the following formula:

CPI in 1878 - CPI in 1877CPI in 1877
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.5 - 9.79.7
×
100
=
-2%

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

• Installation of the first telephone in Massachusetts.
• Declaration of Russia's war on the Ottoman Empire, the conflict is known as Russo-Turkish war.
• First human voice recording of Thomas Edison reciting "Mary had a little lamb".

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 1878 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1878.

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 -2.06% Converted amount (£1 base) £0.98 Price difference (£1 base) £-0.02 CPI in 1877 9.700 CPI in 1878 9.500 Inflation in 1877 -1.02% Inflation in 1878 -2.06%