£1 in 1840 is equivalent in purchasing power to about £0.92 in 1838, an increase of £-0.08 over 2 years. The pound had an average inflation rate of 4.32% per year between 1838 and 1840, producing a cumulative price increase of -8.11%.

This means that prices in 1838 are 8.11% lower than average prices since 1840, according to the Office for National Statistics composite price index.

The 1838 inflation rate was 0.99%. The inflation rate in 1840 was 1.83%. The 1840 inflation rate is lower compared to the average inflation rate of 2.60% per year between 1840 and 2021.

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Cumulative price change | -8.11% |

Average inflation rate | 4.32% |

Converted amount (£1 base) | £0.92 |

Price difference (£1 base) | £-0.08 |

CPI in 1840 | 11.100 |

CPI in 1838 | 10.200 |

Inflation in 1838 | 0.99% |

Inflation in 1840 | 1.83% |

£1 in 1840 | £0.92 in 1838 |

This chart shows a calculation of buying power equivalence for £1 in 1838 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.92 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.92 over time, that means that the "real value" of a single U.K. pound decreases over time. In other words, a pound will pay for fewer items at the store.

This effect explains how inflation erodes the value of a pound over time. By calculating the value in 1838 dollars, the chart below shows how £1 is worth less over 2 years.

According to the Office for National Statistics, each of these GBP amounts below is equal in terms of what it could buy at the time:

This conversion table shows various other 1838 amounts in 1840 pounds, based on the -8.11% change in prices:

Initial value | Equivalent value |
---|---|

£1 pound in 1838 | £1.09 pounds in 1840 |

£5 pounds in 1838 | £5.44 pounds in 1840 |

£10 pounds in 1838 | £10.88 pounds in 1840 |

£50 pounds in 1838 | £54.41 pounds in 1840 |

£100 pounds in 1838 | £108.82 pounds in 1840 |

£500 pounds in 1838 | £544.12 pounds in 1840 |

£1,000 pounds in 1838 | £1,088.24 pounds in 1840 |

£5,000 pounds in 1838 | £5,441.18 pounds in 1840 |

£10,000 pounds in 1838 | £10,882.35 pounds in 1840 |

£50,000 pounds in 1838 | £54,411.76 pounds in 1840 |

£100,000 pounds in 1838 | £108,823.53 pounds in 1840 |

£500,000 pounds in 1838 | £544,117.65 pounds in 1840 |

£1,000,000 pounds in 1838 | £1,088,235.29 pounds in 1840 |

Our calculations use the following inflation rate formula to calculate the change in value between 1838 and 1840:

CPI in 1838
CPI in 1840

×

1840 GBP value

=

1838 GBP value

Then plug in historical CPI values. The U.K. CPI was 11.1 in the year 1840 and 10.2 in 1838:

10.211.1

×

£1

=

£1 in 1840 has the same "purchasing power" or "buying power" as £0.92 in 1838.

To get the total inflation rate for the 2 years between 1838 and 1840, we use the following formula:

CPI in 1838 - CPI in 1840CPI in 1840

×

100

=

Plugging in the values to this equation, we get:

10.2 - 11.111.1

×

100

=

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

- Identification of Antarctica as a new continent by American naval expedition lead by Charles Wilkes.
- Charles Wilkes discovers Antarctica in an American naval expedition.
- Charles Wilkes discovers the Shackleton Ice Shelf in Antarctica.
- The world’s first postage stamp, the Penny Black, is released.
- Samuel Morse patents the telegraph.

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: “£1 in 1840 → 1838 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Sep. 2021, https://www.officialdata.org/uk/inflation/1840?amount=1&endYear=1838.

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.

Cumulative price change | -8.11% |

Average inflation rate | 4.32% |

Converted amount (£1 base) | £0.92 |

Price difference (£1 base) | £-0.08 |

CPI in 1840 | 11.100 |

CPI in 1838 | 10.200 |

Inflation in 1838 | 0.99% |

Inflation in 1840 | 1.83% |

£1 in 1840 | £0.92 in 1838 |