# U.K. inflation rate in 1897: 2.35%

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## Inflation in 1897 and its effect on pound value

Purchasing power decreased by 2.35% in 1897 compared to 1896. On average, you would have to spend 2.35% more money in 1897 than in 1896 for the same item.

In other words, £1 in 1896 is equivalent in purchasing power to about £1.02 in 1897.

The 1896 inflation rate was -1.16%. The inflation rate in 1897 was 2.35%. The 1897 inflation rate is lower compared to the average inflation rate of 4.04% per year between 1897 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1897 was 8.70. It was 8.50 in the previous year, 1896. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.35% Converted amount (£1 base) £1.02 Price difference (£1 base) £0.02 CPI in 1896 8.500 CPI in 1897 8.700 Inflation in 1896 -1.16% Inflation in 1897 2.35%

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

## How to Calculate Inflation Rate for £1, 1896 to 1897

Our calculations use the following inflation rate formula to calculate the change in value between 1896 and 1897:

CPI in 1897 CPI in 1896
×
1896 GBP value
=
1897 GBP value

Then plug in historical CPI values. The U.K. CPI was 8.5 in the year 1896 and 8.7 in 1897:

8.78.5
×
£1
=
£1.02

£1 in 1896 has the same "purchasing power" or "buying power" as £1.02 in 1897.

To get the total inflation rate for the 1 years between 1896 and 1897, we use the following formula:

CPI in 1897 - CPI in 1896CPI in 1896
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.7 - 8.58.5
×
100
=
2%

## News headlines from 1896

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

• First use of radiation treatment for breast cancer by Doctor Emile Grubbe.
• The first Modern Olympic Games take place in Athens. American James Connolly wins the first Olympic gold medal in modern history.
• The world experiences its first car accident when Henry Wells hit a cyclist.

## 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 1897 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 May. 2020, https://www.officialdata.org/UK-inflation-rate-in-1897.

Special thanks to QuickChart for providing downloadable chart images.

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

#### 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.

 Average inflation rate 2.35% Converted amount (£1 base) £1.02 Price difference (£1 base) £0.02 CPI in 1896 8.500 CPI in 1897 8.700 Inflation in 1896 -1.16% Inflation in 1897 2.35%