# U.K. inflation rate in 2010: 4.61%

£

## Inflation in 2010 and its effect on pound value

Purchasing power decreased by 4.61% in 2010 compared to 2009. On average, you would have to spend 4.61% more money in 2010 than in 2009 for the same item.

In other words, £1 in 2009 is equivalent in purchasing power to about £1.05 in 2010.

The 2009 inflation rate was -0.53%. The inflation rate in 2010 was 4.61%. The 2010 inflation rate is higher compared to the average inflation rate of 2.58% per year between 2010 and 2020.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2010 was 881.90. It was 843.00 in the previous year, 2009. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 4.61% Converted amount (£1 base) £1.05 Price difference (£1 base) £0.05 CPI in 2009 843.000 CPI in 2010 881.900 Inflation in 2009 -0.53% Inflation in 2010 4.61%

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

## How to Calculate Inflation Rate for £1, 2009 to 2010

Our calculations use the following inflation rate formula to calculate the change in value between 2009 and 2010:

CPI in 2010 CPI in 2009
×
2009 GBP value
=
2010 GBP value

Then plug in historical CPI values. The U.K. CPI was 843 in the year 2009 and 881.9 in 2010:

881.9843
×
£1
=
£1.05

£1 in 2009 has the same "purchasing power" or "buying power" as £1.05 in 2010.

To get the total inflation rate for the 1 years between 2009 and 2010, we use the following formula:

CPI in 2010 - CPI in 2009CPI in 2009
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

881.9 - 843843
×
100
=
5%

## News headlines from 2009

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

• Barack Obama is inaugurated as the 44th President of the United States.
• An arrest warrant is issued for Omar Hassan al-Bashir, Sudanese President, by International Criminal Court, for war crimes and crimes against humanity. This is the first time a sitting head of state was indicted.
• Chrysler, an automotive company, files for bankruptcy.

## 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 2010 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 May. 2020, https://www.officialdata.org/UK-inflation-rate-in-2010.

Special thanks to QuickChart for providing downloadable chart images.

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

#### 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.

 Average inflation rate 4.61% Converted amount (£1 base) £1.05 Price difference (£1 base) £0.05 CPI in 2009 843.000 CPI in 2010 881.900 Inflation in 2009 -0.53% Inflation in 2010 4.61%