Inflation in 2007 and its effect on pound value
£1 in 2006 is equivalent in purchasing power to about £1.04 in 2007. The pound had an average inflation rate of 4.29% per year between 2006 and 2007, producing a cumulative price increase of 4.29%. Purchasing power decreased by 4.29% in 2007 compared to 2006. On average, you would have to spend 4.29% more money in 2007 than in 2006 for the same item.
This means that prices in 2007 are 1.04 times as high as average prices since 2006, according to the Office for National Statistics composite price index.
The inflation rate in 2006 was 3.20%. The inflation rate in 2007 was 4.29%. The 2007 inflation rate is higher compared to the average inflation rate of 3.31% per year between 2007 and 2024.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2007 was 815.00. It was 781.50 in the previous year, 2006. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
⌃
| Average inflation rate | 4.29% |
| Converted amount £1 base | £1.04 |
| Price difference £1 base | £0.04 |
| CPI in 2006 | 781.500 |
| CPI in 2007 | 815.000 |
| Inflation in 2006 | 3.20% |
| Inflation in 2007 | 4.29% |
| £1 in 2006 | £1.04 in 2007 |
How to calculate inflation rate for £1, 2006 to 2007
Our calculations use the following inflation rate formula to calculate the change in value between 2006 and 2007:
CPI in 2007 CPI in 2006
×
2006 GBP value
=
2007 GBP value
Then plug in historical CPI values. The U.K. CPI was 781.5 in the year 2006 and 815 in 2007:
815781.5
×
£1
=
£1.04
£1 in 2006 has the same "purchasing power" or "buying power" as £1.04 in 2007.
To get the total inflation rate for the 1 years between 2006 and 2007, we use the following formula:
CPI in 2007 - CPI in 2006CPI in 2006
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
815 - 781.5781.5
×
100
=
4%
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 2007 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 11 Dec. 2024, https://www.officialdata.org/UK-inflation-rate-in-2007.
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 | 4.29% |
| Converted amount £1 base | £1.04 |
| Price difference £1 base | £0.04 |
| CPI in 2006 | 781.500 |
| CPI in 2007 | 815.000 |
| Inflation in 2006 | 3.20% |
| Inflation in 2007 | 4.29% |
| £1 in 2006 | £1.04 in 2007 |