U.K. inflation rate in 2018: 2.70%

£

Inflation in 2018 and its effect on pound value

£1 in 2017 is equivalent in purchasing power to about £1.03 in 2018. The pound had an average inflation rate of 2.70% per year between 2017 and 2018, producing a cumulative price increase of 2.70%. Purchasing power decreased by 2.70% in 2018 compared to 2017. On average, you would have to spend 2.70% more money in 2018 than in 2017 for the same item.

This means that prices in 2018 are 1.03 times as high as average prices since 2017, according to the Office for National Statistics composite price index.

The inflation rate in 2017 was 3.58%. The inflation rate in 2018 was 2.70%. The 2018 inflation rate is lower compared to the average inflation rate of 4.25% per year between 2018 and 2024.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2018 was 1,103.92. It was 1,074.90 in the previous year, 2017. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

⌃
Inflation from 2017 to 2018
Average inflation rate2.70%
Converted amount
£1 base		£1.03
Price difference
£1 base		£0.03
CPI in 20171,074.900
CPI in 20181,103.922
Inflation in 20173.58%
Inflation in 20182.70%
£1 in 2017£1.03 in 2018
Recent GBP inflation
Annual Rate, the Office for National Statistics CPI
Download

How to calculate inflation rate for £1, 2017 to 2018

Our calculations use the following inflation rate formula to calculate the change in value between 2017 and 2018:

CPI in 2018 CPI in 2017
×
2017 GBP value
=
2018 GBP value

Then plug in historical CPI values. The U.K. CPI was 1074.9 in the year 2017 and 1103.9223 in 2018:

1103.92231074.9
×
£1
=
£1.03

£1 in 2017 has the same "purchasing power" or "buying power" as £1.03 in 2018.

To get the total inflation rate for the 1 years between 2017 and 2018, we use the following formula:

CPI in 2018 - CPI in 2017CPI in 2017
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

1103.9223 - 1074.91074.9
×
100
=
3%

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 2018 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 15 Apr. 2024, https://www.officialdata.org/UK-inflation-rate-in-2018.

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.

Ian Webster

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.

Email · LinkedIn · Twitter

» Read more about inflation and investment.

Inflation from 2017 to 2018
Average inflation rate2.70%
Converted amount
£1 base		£1.03
Price difference
£1 base		£0.03
CPI in 20171,074.900
CPI in 20181,103.922
Inflation in 20173.58%
Inflation in 20182.70%
£1 in 2017£1.03 in 2018