£

# U.K. inflation rate in 1960: 1.03%

### Inflation in 1960 and Its Effect on Pound Value

Purchasing power decreased by 1.03% in 1960 compared to 1959. On average, you would have to spend 1.03% more money in 1960 than in 1959 for the same item.

In other words, £1 in 1959 is equivalent in purchasing power to about £1.01 in 1960.

The 1959 inflation rate was 0.41%. The inflation rate in 1960 was 1.03%. The 1960 inflation rate is lower compared to the average inflation rate of 5.38% per year between 1960 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1960 was 49.10. It was 48.60 in the previous year, 1959. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 1.03% Converted amount (£1 base) £1.01 Price difference (£1 base) £0.01 CPI in 1959 48.600 CPI in 1960 49.100 Inflation in 1959 0.41% Inflation in 1960 1.03%

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

### How to Calculate Inflation Rate for £1, 1959 to 1960

This inflation calculator uses the following inflation rate formula:

CPI in 1960CPI in 1959
×
1959 GBP value
=
1960 GBP value

Then plug in historical CPI values. The U.K. CPI was 48.6 in the year 1959 and 49.1 in 1960:

49.148.6
×
£1
=
£1.01

£1 in 1959 has the same "purchasing power" or "buying power" as £1.01 in 1960.

To get the total inflation rate for the 1 years between 1959 and 1960, we use the following formula:

CPI in 1960 - CPI in 1959CPI in 1959
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

49.1 - 48.648.6
×
100
=
1%

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

• Hawaii becomes the 50th state of the United States of America.
• Luna I is the first spacecraft to leave the Earth's gravity.
• Fidel Castro becomes the 16th Prime Minister of Cuba after overthrowing Batista.
• The Dalai Lama flees China after India grants him political asylum.

### 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 1960 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1960.