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# U.K. inflation rate in 1985: 6.08%

### Inflation in 1985 and Its Effect on Pound Value

Purchasing power decreased by 6.08% in 1985 compared to 1984. On average, you would have to spend 6.08% more money in 1985 than in 1984 for the same item.

In other words, £1 in 1984 is equivalent in purchasing power to about £1.06 in 1985.

The 1984 inflation rate was 4.98%. The inflation rate in 1985 was 6.08%. The 1985 inflation rate is higher compared to the average inflation rate of 3.24% per year between 1985 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1985 was 373.20. It was 351.80 in the previous year, 1984. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 6.08% Converted amount (£1 base) £1.06 Price difference (£1 base) £0.06 CPI in 1984 351.800 CPI in 1985 373.200 Inflation in 1984 4.98% Inflation in 1985 6.08%

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

### How to Calculate Inflation Rate for £1, 1984 to 1985

This inflation calculator uses the following inflation rate formula:

CPI in 1985CPI in 1984
×
1984 GBP value
=
1985 GBP value

Then plug in historical CPI values. The U.K. CPI was 351.8 in the year 1984 and 373.2 in 1985:

373.2351.8
×
£1
=
£1.06

£1 in 1984 has the same "purchasing power" or "buying power" as £1.06 in 1985.

To get the total inflation rate for the 1 years between 1984 and 1985, we use the following formula:

CPI in 1985 - CPI in 1984CPI in 1984
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

373.2 - 351.8351.8
×
100
=
6%

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

• Apple Computer Inc unveils the Macintosh personal computer.
• Virus causing AIDS (acquired immune deficiency syndrome) is identified as HTLV-III.
• Operation Blue Star took place as Indira Gandhi issued command to attack the Golden Temple, holiest site of Sikh's.
• Indira Gandhi orders an attack on the Golden temple, one of the holiest sites in Sikh tradition, in an operation now called Blue Star.
• A toxic leak in the Union Carbide factory kills 2,259 people, a further 500,000 are injured.

### 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 1985 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-1985.