Inflation in 1988 and its effect on pound value
£1 in 1987 is equivalent in purchasing power to about £1.05 in 1988. The pound had an average inflation rate of 4.90% per year between 1987 and 1988, producing a cumulative price increase of 4.90%. Purchasing power decreased by 4.90% in 1988 compared to 1987. On average, you would have to spend 4.90% more money in 1988 than in 1987 for the same item.
This means that prices in 1988 are 1.05 times as high as average prices since 1987, according to the Office for National Statistics composite price index.
The inflation rate in 1987 was 4.17%. The inflation rate in 1988 was 4.90%. The 1988 inflation rate is higher compared to the average inflation rate of 3.42% per year between 1988 and 2024.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1988 was 421.70. It was 402.00 in the previous year, 1987. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
⌃
| Average inflation rate | 4.90% |
| Converted amount £1 base | £1.05 |
| Price difference £1 base | £0.05 |
| CPI in 1987 | 402.000 |
| CPI in 1988 | 421.700 |
| Inflation in 1987 | 4.17% |
| Inflation in 1988 | 4.90% |
| £1 in 1987 | £1.05 in 1988 |
How to calculate inflation rate for £1, 1987 to 1988
Our calculations use the following inflation rate formula to calculate the change in value between 1987 and 1988:
CPI in 1988 CPI in 1987
×
1987 GBP value
=
1988 GBP value
Then plug in historical CPI values. The U.K. CPI was 402 in the year 1987 and 421.7 in 1988:
421.7402
×
£1
=
£1.05
£1 in 1987 has the same "purchasing power" or "buying power" as £1.05 in 1988.
To get the total inflation rate for the 1 years between 1987 and 1988, we use the following formula:
CPI in 1988 - CPI in 1987CPI in 1987
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
421.7 - 402402
×
100
=
5%
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 1988 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 13 Dec. 2024, https://www.officialdata.org/UK-inflation-rate-in-1988.
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.
| Average inflation rate | 4.90% |
| Converted amount £1 base | £1.05 |
| Price difference £1 base | £0.05 |
| CPI in 1987 | 402.000 |
| CPI in 1988 | 421.700 |
| Inflation in 1987 | 4.17% |
| Inflation in 1988 | 4.90% |
| £1 in 1987 | £1.05 in 1988 |