# £1 in 1985 is worth £0.94 in 1984

£

## Value of £1 from 1985 to 1984

According to the Office for National Statistics composite price index, prices in 1984 are 5.73% lower than average prices since 1985. The British pound experienced an average inflation rate of 6.08% per year during this period, causing the real value of a pound to decrease.

In other words, £1 in 1985 is equivalent in purchasing power to about £0.94 in 1984.

The 1984 inflation rate was 4.98%. The inflation rate in 1985 was 6.08%. The 1985 inflation rate is higher compared to the average inflation rate of 3.24% per year between 1985 and 2020.

 Average inflation rate 6.08% Converted amount (£1 base) £0.94 Price difference (£1 base) £-0.06 CPI in 1985 373.200 CPI in 1984 351.800 Inflation in 1984 4.98% Inflation in 1985 6.08%

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

## How to Calculate Inflation Rate for £1, 1984 to 1985

Our calculations use the following inflation rate formula to calculate the change in value between 1984 and 1985:

CPI in 1984 CPI in 1985
×
1985 GBP value
=
1984 GBP value

Then plug in historical CPI values. The U.K. CPI was 373.2 in the year 1985 and 351.8 in 1984:

351.8373.2
×
£1
=
£0.94

£1 in 1985 has the same "purchasing power" or "buying power" as £0.94 in 1984.

To get the total inflation rate for the 1 years between 1984 and 1985, we use the following formula:

CPI in 1984 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

351.8 - 373.2373.2
×
100
=
-6%

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

• Mikhail Gorbachev replaces Konstantin Chernenko as leader of the Soviet Union.
• Earthquake with a magnitude of 8.1 rocks Mexico City and kills 10,000 people, leaving over 250,000 homeless.
• Mikhail Gorbachev (leader of the Soviet Union) and Ronald Reagan (President of the United States) meet for the first time.
• Ernie Wise makes the first mobile phone call in the UK.

## 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: “£1 in 1985 → 1984 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Sep. 2020, https://www.officialdata.org/uk/inflation/1985?amount=1&endYear=1984.

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.