# U.K. inflation rate in 1994: 2.41%

£

## Inflation in 1994 and its effect on pound value

Purchasing power decreased by 2.41% in 1994 compared to 1993. On average, you would have to spend 2.41% more money in 1994 than in 1993 for the same item.

In other words, £1 in 1993 is equivalent in purchasing power to about £1.02 in 1994.

The 1993 inflation rate was 1.59%. The inflation rate in 1994 was 2.41%. The 1994 inflation rate is lower compared to the average inflation rate of 2.71% per year between 1994 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1994 was 568.50. It was 555.10 in the previous year, 1993. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.41% Converted amount (£1 base) £1.02 Price difference (£1 base) £0.02 CPI in 1993 555.100 CPI in 1994 568.500 Inflation in 1993 1.59% Inflation in 1994 2.41%

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

## How to Calculate Inflation Rate for £1, 1993 to 1994

Our calculations use the following inflation rate formula to calculate the change in value between 1993 and 1994:

CPI in 1994 CPI in 1993
×
1993 GBP value
=
1994 GBP value

Then plug in historical CPI values. The U.K. CPI was 555.1 in the year 1993 and 568.5 in 1994:

568.5555.1
×
£1
=
£1.02

£1 in 1993 has the same "purchasing power" or "buying power" as £1.02 in 1994.

To get the total inflation rate for the 1 years between 1993 and 1994, we use the following formula:

CPI in 1994 - CPI in 1993CPI in 1993
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

568.5 - 555.1555.1
×
100
=
2%

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

• Letters of mutual recognition are exchanged between Israel and the Palestine Liberation Organization.
• The Nobel Peace Prize is awarded to Nelson Mandela and South African President de Klerk.
• A new democratic constitution is approved by black and white leaders in South Africa.

## 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 1994 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 May. 2020, https://www.officialdata.org/UK-inflation-rate-in-1994.