£1 in 2022 is equivalent in purchasing power to about £1.07 today. The pound had an average inflation rate of 6.70% in the last 12 months. As a result, the real value of a pound has been decreasing recently. Purchasing power decreased by 6.70% in 2023 compared to 2022. On average, you would have to spend 6.70% more money in 2023 than in 2022 for the same item.
This means that today's prices are 1.07 times as high as average prices since 2022, according to the Office for National Statistics composite price index. A pound today only buys 93.458% of what it could buy back then.
The inflation rate in 2022 was 10.70%. The current inflation rate compared to last year is now 6.70%. If this number holds, £1 today will be equivalent in buying power to £1.07 next year.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2023 is 1,394.48. It was 1,306.91 in the previous year, 2022. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
Average inflation rate | 6.70% |
Converted amount £1 base | £1.07 |
Price difference £1 base | £0.07 |
CPI in 2022 | 1,306.912 |
CPI in 2023 | 1,394.475 |
Inflation in 2022 | 10.70% |
Inflation in 2023 | 6.70% |
£1 in 2022 | £1.07 in 2023 |
Our calculations use the following inflation rate formula to calculate the change in value between 2022 and today:
Then plug in historical CPI values. The U.K. CPI was 1306.91194551 in the year 2022 and 1394.4750458591698 in 2023:
£1 in 2022 has the same "purchasing power" or "buying power" as £1.07 in 2023.
To get the total inflation rate for the 1 years between 2022 and 2023, we use the following formula:
Plugging in the values to this equation, we get:
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 2023 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 Nov. 2023, https://www.officialdata.org/UK-inflation-rate-in-2023.
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 | 6.70% |
Converted amount £1 base | £1.07 |
Price difference £1 base | £0.07 |
CPI in 2022 | 1,306.912 |
CPI in 2023 | 1,394.475 |
Inflation in 2022 | 10.70% |
Inflation in 2023 | 6.70% |
£1 in 2022 | £1.07 in 2023 |