£

# U.K. inflation rate in 1950: 3.13%

### Inflation in 1950 and Its Effect on Pound Value

Purchasing power decreased by 3.13% in 1950 compared to 1949. On average, you would have to spend 3.13% more money in 1950 than in 1949 for the same item.

In other words, £1 in 1949 is equivalent in purchasing power to about £1.03 in 1950.

The 1949 inflation rate was 2.89%. The inflation rate in 1950 was 3.13%. The 1950 inflation rate is lower compared to the average inflation rate of 5.19% per year between 1950 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1950 was 33.00. It was 32.00 in the previous year, 1949. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 3.13% Converted amount (£1 base) £1.03 Price difference (£1 base) £0.03 CPI in 1949 32.000 CPI in 1950 33.000 Inflation in 1949 2.89% Inflation in 1950 3.13%

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

### How to Calculate Inflation Rate for £1, 1949 to 1950

This inflation calculator uses the following inflation rate formula:

CPI in 1950CPI in 1949
×
1949 GBP value
=
1950 GBP value

Then plug in historical CPI values. The U.K. CPI was 32 in the year 1949 and 33 in 1950:

3332
×
£1
=
£1.03

£1 in 1949 has the same "purchasing power" or "buying power" as £1.03 in 1950.

To get the total inflation rate for the 1 years between 1949 and 1950, we use the following formula:

CPI in 1950 - CPI in 1949CPI in 1949
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

33 - 3232
×
100
=
3%

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

• David Ben-Gurion's Mapai party wins the first Israeli election.
• The Federal Republic of Germany, or West Germany, is created by the combination of the American, British, and French occupation zones.
• The Soviet Union ends the blockade of Berlin.
• The People's Republic of China is proclaimed by Chinese Communist leaders.

### 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 1950 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1950.