U.K. inflation rate in 1945: 2.75%

UK Inflation Calculator

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Inflation in 1945 and Its Effect on Pound Value

Purchasing power decreased by 2.75% in 1945 compared to 1944. On average, you would have to spend 2.75% more money in 1945 than in 1944 for the same item.

In other words, £1 in 1944 is equivalent in purchasing power to about £1.03 in 1945.

The 1944 inflation rate was 2.82%. The inflation rate in 1945 was 2.75%. The 1945 inflation rate is lower compared to the average inflation rate of 5.16% per year between 1945 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1945 was 26.20. It was 25.50 in the previous year, 1944. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.75% Converted amount (£1 base) £1.03 Price difference (£1 base) £0.03 CPI in 1944 25.500 CPI in 1945 26.200 Inflation in 1944 2.82% Inflation in 1945 2.75%

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

How to Calculate Inflation Rate for £1, 1944 to 1945

This inflation calculator uses the following inflation rate formula:

CPI in 1945CPI in 1944
×
1944 GBP value
=
1945 GBP value

Then plug in historical CPI values. The U.K. CPI was 25.5 in the year 1944 and 26.2 in 1945:

26.225.5
×
£1
=
£1.03

£1 in 1944 has the same "purchasing power" or "buying power" as £1.03 in 1945.

To get the total inflation rate for the 1 years between 1944 and 1945, we use the following formula:

CPI in 1945 - CPI in 1944CPI in 1944
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

26.2 - 25.525.5
×
100
=
3%

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

• Leningrad is liberated after 880 days of German rule: 600,000 men lose their lives during the occupation.
• The first of more than 180,000 Jews arrive at Auschwitz.
• Paris is liberated from Nazi occupation in an event known as Freedom Tuesday.
• Nazis crush the Warsaw Uprising, killing 250,000 people.

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 1945 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Apr. 2020, https://www.officialdata.org/UK-inflation-rate-in-1945.