U.K. inflation rate in 2023: 6.70%

£

Inflation in 2023 and its effect on pound value

£1 in 2022 is equivalent in purchasing power to about £1.07 today. The pound had an average inflation rate of 6.70% in the last 12 months. As a result, the real value of a pound has been decreasing recently. Purchasing power decreased by 6.70% in 2023 compared to 2022. On average, you would have to spend 6.70% more money in 2023 than in 2022 for the same item.

This means that today's prices are 1.07 times as high as average prices since 2022, according to the Office for National Statistics composite price index. A pound today only buys 93.458% of what it could buy back then.

The inflation rate in 2022 was 10.70%. The current inflation rate compared to last year is now 6.70%. If this number holds, £1 today will be equivalent in buying power to £1.07 next year.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2023 is 1,394.48. It was 1,306.91 in the previous year, 2022. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

⌃
Inflation from 2022 to 2023
Average inflation rate6.70%
Converted amount
£1 base		£1.07
Price difference
£1 base		£0.07
CPI in 20221,306.912
CPI in 20231,394.475
Inflation in 202210.70%
Inflation in 20236.70%
£1 in 2022£1.07 in 2023
Recent GBP inflation
Annual Rate, the Office for National Statistics CPI
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How to calculate inflation rate for £1 since 2022

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

CPI today CPI in 2022
×
2022 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 1306.91194551 in the year 2022 and 1394.4750458591698 in 2023:

1394.47504585916981306.91194551
×
£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:

1394.4750458591698 - 1306.911945511306.91194551
×
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, 1 Dec. 2023, https://www.officialdata.org/UK-inflation-rate-in-2023.

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

Ian Webster

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 2022 to 2023
Average inflation rate6.70%
Converted amount
£1 base		£1.07
Price difference
£1 base		£0.07
CPI in 20221,306.912
CPI in 20231,394.475
Inflation in 202210.70%
Inflation in 20236.70%
£1 in 2022£1.07 in 2023