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# U.K. inflation rate in 2003: 2.89%

### Inflation in 2003 and Its Effect on Pound Value

Purchasing power decreased by 2.89% in 2003 compared to 2002. On average, you would have to spend 2.89% more money in 2003 than in 2002 for the same item.

In other words, £1 in 2002 is equivalent in purchasing power to about £1.03 in 2003.

The 2002 inflation rate was 1.67%. The inflation rate in 2003 was 2.89%. The 2003 inflation rate is higher compared to the average inflation rate of 2.77% per year between 2003 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2003 was 715.20. It was 695.10 in the previous year, 2002. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.89% Converted amount (£1 base) £1.03 Price difference (£1 base) £0.03 CPI in 2002 695.100 CPI in 2003 715.200 Inflation in 2002 1.67% Inflation in 2003 2.89%

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

### How to Calculate Inflation Rate for £1, 2002 to 2003

This inflation calculator uses the following inflation rate formula:

CPI in 2003CPI in 2002
×
2002 GBP value
=
2003 GBP value

Then plug in historical CPI values. The U.K. CPI was 695.1 in the year 2002 and 715.2 in 2003:

715.2695.1
×
£1
=
£1.03

£1 in 2002 has the same "purchasing power" or "buying power" as £1.03 in 2003.

To get the total inflation rate for the 1 years between 2002 and 2003, we use the following formula:

CPI in 2003 - CPI in 2002CPI in 2002
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

715.2 - 695.1695.1
×
100
=
3%

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

• United States deploys conventional forces as part of Operation Anaconda during the US invasion of Afghanistan.
• Jimmy Carter visits Cuba, marking the first time an American president has visited the Island since 1959.
• It is announced that Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia will become members of the European Union from May 1, 2004.

### 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 2003 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-2003.