U.K. inflation rate in 1949: 2.89%

£

Inflation in 1949 and its effect on pound value

Purchasing power decreased by 2.89% in 1949 compared to 1948. On average, you would have to spend 2.89% more money in 1949 than in 1948 for the same item.

In other words, £1 in 1948 is equivalent in purchasing power to about £1.03 in 1949.

The 1948 inflation rate was 7.61%. The inflation rate in 1949 was 2.89%. The 1949 inflation rate is lower compared to the average inflation rate of 5.16% per year between 1949 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1949 was 32.00. It was 31.10 in the previous year, 1948. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.89% Converted amount (£1 base) £1.03 Price difference (£1 base) £0.03 CPI in 1948 31.100 CPI in 1949 32.000 Inflation in 1948 7.61% Inflation in 1949 2.89%

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

How to Calculate Inflation Rate for £1, 1948 to 1949

Our calculations use the following inflation rate formula to calculate the change in value between 1948 and 1949:

CPI in 1949 CPI in 1948
×
1948 GBP value
=
1949 GBP value

Then plug in historical CPI values. The U.K. CPI was 31.1 in the year 1948 and 32 in 1949:

3231.1
×
£1
=
£1.03

£1 in 1948 has the same "purchasing power" or "buying power" as £1.03 in 1949.

To get the total inflation rate for the 1 years between 1948 and 1949, we use the following formula:

CPI in 1949 - CPI in 1948CPI in 1948
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

32 - 31.131.1
×
100
=
3%

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

• Mahatma Gandhi is assassinated by Nathuram Godse.
• Israel declares independence from British administration.
• The International Declaration of Human Rights is adopted by United Nations Commission on Human Rights.
• Moscow celebrates 500 years of the Russian Orthodox Church.
• Physicists Alpher, Bethe, and Gamow propose the Big Bang theory in the ‘Physical Review’

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 1949 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 3 Jun. 2020, https://www.officialdata.org/UK-inflation-rate-in-1949.