U.K. inflation rate in 2023: 7.07%

£

Inflation in 2023 and its effect on pound value

£1 in 2022 is equivalent in purchasing power to about £1.07 in 2023. The pound had an average inflation rate of 7.07% per year between 2022 and 2023, producing a cumulative price increase of 7.07%. Purchasing power decreased by 7.07% in 2023 compared to 2022. On average, you would have to spend 7.07% more money in 2023 than in 2022 for the same item.

This means that prices in 2023 are 1.07 times as high as average prices since 2022, according to the Office for National Statistics composite price index.

The inflation rate in 2022 was 7.90%. The inflation rate in 2023 was 7.07%.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2023 was 1,363.94. It was 1,273.86 in the previous year, 2022. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

 Average inflation rate 7.07% Converted amount£1 base £1.07 Price difference£1 base £0.07 CPI in 2022 1,273.855 CPI in 2023 1,363.943 Inflation in 2022 7.90% Inflation in 2023 7.07% £1 in 2022 £1.07 in 2023

Recent GBP inflation
Annual Rate, the Office for National Statistics CPI

How to calculate inflation rate for £1, 2022 to 2023

Our calculations use the following inflation rate formula to calculate the change in value between 2022 and 2023:

CPI in 2023 CPI in 2022
×
2022 GBP value
=
2023 GBP value

Then plug in historical CPI values. The U.K. CPI was 1273.85545547 in the year 2022 and 1363.9425132808383 in 2023:

1363.94251328083831273.85545547
×
£1
=
£1.07

£1 in 2022 has the same "purchasing power" or "buying power" as £1.07 in 2023.

To get the total inflation rate for the 1 years between 2022 and 2023, we use the following formula:

CPI in 2023 - CPI in 2022CPI in 2022
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

1363.9425132808383 - 1273.855455471273.85545547
×
100
=
7%

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 the current year, which is based on The Bank of England's forecast.

You may use the following MLA citation for this page: “Inflation Rate in 2023 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Jun. 2024, https://www.officialdata.org/UK-inflation-rate-in-2023.

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