£

# U.K. inflation rate in 1936: 0.63%

### Inflation in 1936 and Its Effect on Pound Value

Purchasing power decreased by 0.63% in 1936 compared to 1935. On average, you would have to spend 0.63% more money in 1936 than in 1935 for the same item.

In other words, £1 in 1935 is equivalent in purchasing power to about £1.01 in 1936.

The 1935 inflation rate was 0.63%. The inflation rate in 1936 was 0.63%. The 1936 inflation rate is lower compared to the average inflation rate of 5.21% per year between 1936 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1936 was 16.00. It was 15.90 in the previous year, 1935. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 0.63% Converted amount (£1 base) £1.01 Price difference (£1 base) £0.01 CPI in 1935 15.900 CPI in 1936 16.000 Inflation in 1935 0.63% Inflation in 1936 0.63%

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

### How to Calculate Inflation Rate for £1, 1935 to 1936

This inflation calculator uses the following inflation rate formula:

CPI in 1936CPI in 1935
×
1935 GBP value
=
1936 GBP value

Then plug in historical CPI values. The U.K. CPI was 15.9 in the year 1935 and 16 in 1936:

1615.9
×
£1
=
£1.01

£1 in 1935 has the same "purchasing power" or "buying power" as £1.01 in 1936.

To get the total inflation rate for the 1 years between 1935 and 1936, we use the following formula:

CPI in 1936 - CPI in 1935CPI in 1935
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

16 - 15.915.9
×
100
=
1%

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

• Hitler violates the Treaty of Versailles by ordering German rearmament.
• In an event known as "Black Sunday", a severe sandstorm strikes the US Midwest, coining the term "Dust Bowl".
• Communist forces end their Long March bringing Mao Zedong to prominence.
• First trans-pacific airmail flight by a flying boat the "China Clipper" that took off from Alameda, California

### 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 1936 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1936.