U.K. inflation rate in 1894: -1.14%

Inflation in 1894 and its effect on pound value

Purchasing power increased by 1.14% in 1894 compared to 1893. On average, you would have to spend 1.14% less money in 1894 than in 1893 for the same item. This is an example of deflation.

In other words, £1 in 1893 is equivalent in purchasing power to about £0.99 in 1894.

The 1893 inflation rate was -1.12%. The inflation rate in 1894 was -1.14%. The 1894 inflation rate is lower compared to the average inflation rate of 3.94% per year between 1894 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1894 was 8.70. It was 8.80 in the previous year, 1893. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1894 CPI is less than 1893 CPI, negative inflation (also known as deflation) has occurred.


Inflation from 1893 to 1894
Average inflation rate -1.14%
Converted amount (£1 base) £0.99
Price difference (£1 base) £-0.01
CPI in 1893 8.800
CPI in 1894 8.700
Inflation in 1893 -1.12%
Inflation in 1894 -1.14%

GBP Inflation since 1750
Annual Rate, the Office for National Statistics CPI
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How to Calculate Inflation Rate for £1, 1893 to 1894

Our calculations use the following inflation rate formula to calculate the change in value between 1893 and 1894:

CPI in 1894 CPI in 1893
×
1893 GBP value
=
1894 GBP value

Then plug in historical CPI values. The U.K. CPI was 8.8 in the year 1893 and 8.7 in 1894:

8.78.8
×
£1
=
£0.99

£1 in 1893 has the same "purchasing power" or "buying power" as £0.99 in 1894.

To get the total inflation rate for the 1 years between 1893 and 1894, we use the following formula:

CPI in 1894 - CPI in 1893CPI in 1893
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.7 - 8.88.8
×
100
=
-1%

News headlines from 1893

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

  • The first ever successful open heart surgery, without anaesthesia performed by Daniel Williams.
  • New Zealand becomes the first nation to grant women the right to vote .
  • The first national election where women were allowed to vote takes place at New Zealand's general election.

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 1894 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 1 Dec. 2020, https://www.officialdata.org/UK-inflation-rate-in-1894.

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.


Ian Webster

About the author

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.

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Inflation from 1893 to 1894
Average inflation rate -1.14%
Converted amount (£1 base) £0.99
Price difference (£1 base) £-0.01
CPI in 1893 8.800
CPI in 1894 8.700
Inflation in 1893 -1.12%
Inflation in 1894 -1.14%