U.K. inflation rate in 1921: -8.70%

£

Inflation in 1921 and its effect on pound value

£1 in 1920 is equivalent in purchasing power to about £0.91 in 1921. The pound had an average deflation rate of -8.70% per year since 1920, producing a cumulative price change of -8.70%. Purchasing power increased by 8.70% in 1921 compared to 1920. On average, you would have to spend 8.70% less money in 1921 than in 1920 for the same item. This is an example of deflation.

This means that prices in 1921 are 8.7% lower than average prices since 1920, according to the Office for National Statistics composite price index.

The inflation rate in 1920 was 15.53%. The inflation rate in 1921 was -8.70%. The 1921 inflation rate is lower compared to the average inflation rate of 4.08% per year between 1921 and 2024.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1921 was 23.10. It was 25.30 in the previous year, 1920. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1921 CPI is less than 1920 CPI, negative inflation (also known as deflation) has occurred.

⌃
Inflation from 1920 to 1921
Average inflation rate-8.70%
Converted amount
£1 base		£0.91
Price difference
£1 base		£-0.09
CPI in 192025.300
CPI in 192123.100
Inflation in 192015.53%
Inflation in 1921-8.70%
£1 in 1920£0.91 in 1921
Recent GBP inflation
Annual Rate, the Office for National Statistics CPI
Download

How to calculate inflation rate for £1, 1920 to 1921

Our calculations use the following inflation rate formula to calculate the change in value between 1920 and 1921:

CPI in 1921 CPI in 1920
×
1920 GBP value
=
1921 GBP value

Then plug in historical CPI values. The U.K. CPI was 25.3 in the year 1920 and 23.1 in 1921:

23.125.3
×
£1
=
£0.91

£1 in 1920 has the same "purchasing power" or "buying power" as £0.91 in 1921.

To get the total inflation rate for the 1 years between 1920 and 1921, we use the following formula:

CPI in 1921 - CPI in 1920CPI in 1920
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

23.1 - 25.325.3
×
100
=
-9%

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 the current year, which is based on The Bank of England's forecast.

You may use the following MLA citation for this page: “Inflation Rate in 1921 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 Nov. 2024, https://www.officialdata.org/UK-inflation-rate-in-1921.

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 1920 to 1921
Average inflation rate-8.70%
Converted amount
£1 base		£0.91
Price difference
£1 base		£-0.09
CPI in 192025.300
CPI in 192123.100
Inflation in 192015.53%
Inflation in 1921-8.70%
£1 in 1920£0.91 in 1921