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# U.K. inflation rate in 1975: 24.24%

### Inflation in 1975 and Its Effect on Pound Value

Purchasing power decreased by 24.24% in 1975 compared to 1974. On average, you would have to spend 24.24% more money in 1975 than in 1974 for the same item.

In other words, £1 in 1974 is equivalent in purchasing power to about £1.24 in 1975.

The 1974 inflation rate was 16.04%. The inflation rate in 1975 was 24.24%. The 1975 inflation rate is higher compared to the average inflation rate of 4.86% per year between 1975 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1975 was 134.80. It was 108.50 in the previous year, 1974. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 24.24% Converted amount (£1 base) £1.24 Price difference (£1 base) £0.24 CPI in 1974 108.500 CPI in 1975 134.800 Inflation in 1974 16.04% Inflation in 1975 24.24%

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

### How to Calculate Inflation Rate for £1, 1974 to 1975

This inflation calculator uses the following inflation rate formula:

CPI in 1975CPI in 1974
×
1974 GBP value
=
1975 GBP value

Then plug in historical CPI values. The U.K. CPI was 108.5 in the year 1974 and 134.8 in 1975:

134.8108.5
×
£1
=
£1.24

£1 in 1974 has the same "purchasing power" or "buying power" as £1.24 in 1975.

To get the total inflation rate for the 1 years between 1974 and 1975, we use the following formula:

CPI in 1975 - CPI in 1974CPI in 1974
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

134.8 - 108.5108.5
×
100
=
24%

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

• Ayatollah Khomeini, appeals for an Islamic republic of Iran.
• The 1,000th victim of the Northern Ireland conflict between republican and loyalist paramilitaries is taken.
• President Richard Nixon announces his resignation.

### 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 1975 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1975.