U.K. inflation rate in 1986: 3.40%

Inflation in 1986 and its effect on pound value

£1 in 1985 is equivalent in purchasing power to about £1.03 in 1986. The pound had an average inflation rate of 3.40% per year between 1985 and 1986, producing a cumulative price increase of 3.40%. Purchasing power decreased by 3.40% in 1986 compared to 1985. On average, you would have to spend 3.40% more money in 1986 than in 1985 for the same item.

This means that prices in 1986 are 1.03 times as high as average prices since 1985, according to the Office for National Statistics composite price index.

The inflation rate in 1985 was 6.08%. The inflation rate in 1986 was 3.40%. The 1986 inflation rate is lower compared to the average inflation rate of 3.48% per year between 1986 and 2024.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1986 was 385.90. It was 373.20 in the previous year, 1985. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.


Inflation from 1985 to 1986
Average inflation rate3.40%
Converted amount
£1 base
£1.03
Price difference
£1 base
£0.03
CPI in 1985373.200
CPI in 1986385.900
Inflation in 19856.08%
Inflation in 19863.40%
£1 in 1985£1.03 in 1986

Recent GBP inflation
Annual Rate, the Office for National Statistics CPI
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How to calculate inflation rate for £1, 1985 to 1986

Our calculations use the following inflation rate formula to calculate the change in value between 1985 and 1986:

CPI in 1986 CPI in 1985
×
1985 GBP value
=
1986 GBP value

Then plug in historical CPI values. The U.K. CPI was 373.2 in the year 1985 and 385.9 in 1986:

385.9373.2
×
£1
=
£1.03

£1 in 1985 has the same "purchasing power" or "buying power" as £1.03 in 1986.

To get the total inflation rate for the 1 years between 1985 and 1986, we use the following formula:

CPI in 1986 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

385.9 - 373.2373.2
×
100
=
3%

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 the current year, which is based on The Bank of England's forecast.

You may use the following MLA citation for this page: “Inflation Rate in 1986 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 9 Dec. 2024, https://www.officialdata.org/UK-inflation-rate-in-1986.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


Ian Webster

About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 1985 to 1986
Average inflation rate3.40%
Converted amount
£1 base
£1.03
Price difference
£1 base
£0.03
CPI in 1985373.200
CPI in 1986385.900
Inflation in 19856.08%
Inflation in 19863.40%
£1 in 1985£1.03 in 1986