U.K. inflation rate in 2020: 1.50%

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U.K. inflation rate in 2020: 1.50%

Inflation in 2020 and Its Effect on Pound Value

Purchasing power decreased by 1.50% in 2020 compared to 2019. On average, you would have to spend 1.50% more money in 2020 than in 2019 for the same item.

In other words, £1 in 2019 is equivalent in purchasing power to about £1.01 in 2020.

The 2019 inflation rate was 1.80%. The current inflation rate (2019 to 2020) is now 1.50%1. If this number holds, £1 today will be equivalent in buying power to £1.01 next year.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2020 is 1,138.24. It was 1,121.42 in the previous year, 2019. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.


Inflation from 2019 to 2020
Average inflation rate 1.50%
Converted amount (£1 base) £1.01
Price difference (£1 base) £0.01
CPI in 2019 1,121.422
CPI in 2020 1,138.243
Inflation in 2019 1.80%
Inflation in 2020 1.50%

GBP Inflation since 1750
Annual Rate, the Office for National Statistics CPI
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How to Calculate Inflation Rate for £1 since 2019

This inflation calculator uses the following inflation rate formula:

CPI in 2020CPI in 2019
×
2019 GBP value
=
2020 GBP value

Then plug in historical CPI values. The U.K. CPI was 1121.4220303 in the year 2019 and 1138.2433607545 in 2020:

1138.24336075451121.4220303
×
£1
=
£1.01

£1 in 2019 has the same "purchasing power" or "buying power" as £1.01 in 2020.

To get the total inflation rate for the 1 years between 2019 and 2020, we use the following formula:

CPI in 2020 - CPI in 2019CPI in 2019
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 1121.42203031121.4220303
×
100
=
1%

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: “Inflation Rate in 2020 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 20 Jan. 2020, https://www.officialdata.org/UK-inflation-rate-in-2020.

Special thanks to QuickChart for providing downloadable chart images.


About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 2019 to 2020
Average inflation rate 1.50%
Converted amount (£1 base) £1.01
Price difference (£1 base) £0.01
CPI in 2019 1,121.422
CPI in 2020 1,138.243
Inflation in 2019 1.80%
Inflation in 2020 1.50%