# U.K. inflation rate in 2022: 2.27%

£

## Inflation in 2022 and its effect on pound value

£1 in 2021 is equivalent in purchasing power to about £1.02 today. The pound had an average inflation rate of 2.27% in the last 12 months. As a result, the real value of a pound has been decreasing recently. Purchasing power decreased by 2.27% in 2022 compared to 2021. On average, you would have to spend 2.27% more money in 2022 than in 2021 for the same item.

This means that today's prices are 1.02 times higher than average prices since 2021, according to the Office for National Statistics composite price index. A pound today only buys 98.04% of what it could buy back then.

The inflation rate in 2021 was 2.28%. The current year-over-year inflation rate (2021 to 2022) is now 2.27%. If this number holds, £1 today will be equivalent in buying power to £1.02 next year.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2022 is 1,204.87. It was 1,178.17 in the previous year, 2021. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 2.27% Converted amount (£1 base) £1.02 Price difference (£1 base) £0.02 CPI in 2021 1,178.172 CPI in 2022 1,204.875 Inflation in 2021 2.28% Inflation in 2022 2.27% £1 in 2021 £1.02 in 2022

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

## How to Calculate Inflation Rate for £1 since 2021

Our calculations use the following inflation rate formula to calculate the change in value between 2021 and today:

CPI today CPI in 2021
×
2021 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 1178.1717074508606 in the year 2021 and 1204.87455923078 in 2022:

1204.874559230781178.1717074508606
×
£1
=
£1.02

£1 in 2021 has the same "purchasing power" or "buying power" as £1.02 in 2022.

To get the total inflation rate for the 1 years between 2021 and 2022, we use the following formula:

CPI in 2022 - CPI in 2021CPI in 2021
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

1204.87455923078 - 1178.17170745086061178.1717074508606
×
100
=
2%

## 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 2022 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Jan. 2022, https://www.officialdata.org/UK-inflation-rate-in-2022.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

#### 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.

 Average inflation rate 2.27% Converted amount (£1 base) £1.02 Price difference (£1 base) £0.02 CPI in 2021 1,178.172 CPI in 2022 1,204.875 Inflation in 2021 2.28% Inflation in 2022 2.27% £1 in 2021 £1.02 in 2022