U.K. inflation rate in 1942: 7.14%

Inflation in 1942 and its effect on pound value

Purchasing power decreased by 7.14% in 1942 compared to 1941. On average, you would have to spend 7.14% more money in 1942 than in 1941 for the same item.

In other words, £1 in 1941 is equivalent in purchasing power to about £1.07 in 1942.

The 1941 inflation rate was 10.89%. The inflation rate in 1942 was 7.14%. The 1942 inflation rate is higher compared to the average inflation rate of 5.07% per year between 1942 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1942 was 24.00. It was 22.40 in the previous year, 1941. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.


Inflation from 1941 to 1942
Average inflation rate 7.14%
Converted amount (£1 base) £1.07
Price difference (£1 base) £0.07
CPI in 1941 22.400
CPI in 1942 24.000
Inflation in 1941 10.89%
Inflation in 1942 7.14%

GBP Inflation since 1750
Annual Rate, the Office for National Statistics CPI
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How to Calculate Inflation Rate for £1, 1941 to 1942

Our calculations use the following inflation rate formula to calculate the change in value between 1941 and 1942:

CPI in 1942 CPI in 1941
×
1941 GBP value
=
1942 GBP value

Then plug in historical CPI values. The U.K. CPI was 22.4 in the year 1941 and 24 in 1942:

2422.4
×
£1
=
£1.07

£1 in 1941 has the same "purchasing power" or "buying power" as £1.07 in 1942.

To get the total inflation rate for the 1 years between 1941 and 1942, we use the following formula:

CPI in 1942 - CPI in 1941CPI in 1941
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

24 - 22.422.4
×
100
=
7%

News headlines from 1941

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

  • 6,000 Jews are exterminated in the Bucharest pogrom in Romania.
  • Kuomintang troops open fire at communist forces, leading to the resumption of the Chinese civil war.
  • The British battle cruiser the HMS Hood is sunk by the German Battleship Bismarck, leading to 1,416 dead and only 3 survivors.
  • Germany, Italy, and Romania declare war on the Soviet Union.

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 1942 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 22 Sep. 2020, https://www.officialdata.org/UK-inflation-rate-in-1942.

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 1941 to 1942
Average inflation rate 7.14%
Converted amount (£1 base) £1.07
Price difference (£1 base) £0.07
CPI in 1941 22.400
CPI in 1942 24.000
Inflation in 1941 10.89%
Inflation in 1942 7.14%