Purchasing power decreased by 2.20% in 2018 compared to the previous year, 2017. On average, you would have to spend 2.20% more money in 2018 than in 2017 for the same item.
In other words, £1 in 2017 is equivalent in purchasing power to £1.02 in 2018.
The 2017 inflation rate was 3.59%. The current inflation rate (2017 to 2018) is now 2.20%1. If this number holds, £1 today will be equivalent to £1.02 next year.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2018 is 1098.27186. It was 1074.63 in the previous year, 2017. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
|Average inflation rate||2.20%|
|Converted amount (£1 base)||£1.02|
|Price difference (£1 base)||£0.02|
|CPI in 2017||1,074.630|
|CPI in 2018||1,098.272|
|Inflation in 2017||3.59%|
|Inflation in 2018||2.20%|
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The UK CPI was 1074.63 in the year 2017 and 1098.27186 in 2018:
£1 in 2017 has the same "purchasing power" or "buying power" as £1.02 in 2018.
To get the total inflation rate for the 1 years between 2017 and 2018, we use the following formula:
Plugging in the values to this equation, we get:
Politics and news often influence economic performance. Here's what was happening at the time:
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 2018 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Dec. 2018, https://www.officialdata.org/UK-inflation-rate-in-2018.