The composite price index (CPI) in 1985 was 373.2. It was 351.8 in the previous year. This change in CPI is used by the Office for National Statistics to calculate inflation.

According to the Office for National Statistics composite price index, the pound experienced an average inflation rate of 3.32% per year. Prices in 2018 are 194.3% higher than prices in 1985.

In other words, £100 in 1985 is equivalent in purchasing power to £294.29 in 2018, a difference of £194.29 over 33 years.

The current inflation rate is now 2.20%^{1}. If this number holds, £100 today will be equivalent to £102.20 next year.

Cumulative price change | 194.29% |

Average inflation rate | 3.32% |

Converted amount (£100 base) | £294.29 |

Price difference (£100 base) | £194.29 |

CPI in 1985 | 373.2 |

CPI in 2018 | 1098.27186 |

CPI in 2018 / CPI in 1985 * 1985 GBP value = 2018 GBP value

Then plug in historical CPI values. The UK CPI was 373.2 in the year 1985 and 1098.27186 in 2018:

1098.27186 / 373.2 * £100 =

£100 in 1985 has the same "purchasing power" or "buying power" as £294.29 in 2018.

Here are calculations of buying power over time for £100 in 1985 (price index tracking began in 1750). Each of these GBP amounts below is equivalent in terms of what it could buy at the time:

Year | GBP Value | Inflation Rate |
---|---|---|

1985 | £100.00 | 6.08% |

1986 | £103.40 | 3.40% |

1987 | £107.72 | 4.17% |

1988 | £113.00 | 4.90% |

1989 | £121.78 | 7.78% |

1990 | £133.31 | 9.46% |

1991 | £141.13 | 5.87% |

1992 | £146.41 | 3.74% |

1993 | £148.74 | 1.59% |

1994 | £152.33 | 2.41% |

1995 | £157.61 | 3.47% |

1996 | £161.41 | 2.41% |

1997 | £166.48 | 3.14% |

1998 | £172.19 | 3.43% |

1999 | £174.84 | 1.54% |

2000 | £180.01 | 2.96% |

2001 | £183.20 | 1.77% |

2002 | £186.25 | 1.67% |

2003 | £191.64 | 2.89% |

2004 | £197.35 | 2.98% |

2005 | £202.92 | 2.82% |

2006 | £209.41 | 3.20% |

2007 | £218.38 | 4.29% |

2008 | £227.09 | 3.99% |

2009 | £225.88 | -0.53% |

2010 | £236.31 | 4.61% |

2011 | £248.61 | 5.20% |

2012 | £256.59 | 3.21% |

2013 | £264.39 | 3.04% |

2014 | £270.63 | 2.36% |

2015 | £273.31 | 0.99% |

2016 | £277.96 | 1.70% |

2017 | £287.95 | 3.59% |

2018 | £294.29 | 2.20%* |

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.

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 1985 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 17 Jun. 2018, https://www.officialdata.org/UK-inflation-rate-in-1985.