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United Kingdom
Inflation in United Kingdom: 1988 – 2026

Since 20201 Year5 Years10 Years15 Years20 YearsAll
Start
End
Latest month of data:May 2026
Cumulative Inflation for 38 Years 5 Months
+194.2%
Average Inflation Rate
2.8%
Price Multiplier
2.94x
Loss of Buying Power
-66.0%
inflationcompare.com

Report for: January 1988 — May 2026

Moderate (creeping) inflation was recorded with an average annual rate of 2.8%. This is the standard operating mode for most economies, stimulating consumption. However, over time, this rate leads to a logical erosion of capital: the total cost of living increased by 2.94 times, reducing the real value of GBP to 34%.

Inflation Rate by Year

Inflation Adjusted Prices

Equivalent Value
What cost 100 GBP in 1988, would cost 294 GBP today. To maintain the same standard of living, income over 38 years should have grown by 2.94 times.
1988100 GBP
+194.2%
2026294 GBP

Value Adjusted for Inflation

Loss of Buying Power

Real Value
Since 1988, the purchasing power of 100 GBP has decreased to 34 GBP. The chart shows how GBP lost a total of 66.0% of its value over 38 years.
1988100 GBP
-66.0%
202634 GBP
-66%
Total Loss

Purchasing Power Over Time

Cumulative Inflation (%)

Historical Inflation Table

YearInflation (%)
20261.60%
20253.37%
20242.50%
20233.99%
202210.53%
20215.39%
20200.59%
20191.30%
20182.10%
20172.97%
20161.56%
20150.20%
20140.55%
20132.03%
20122.68%
20114.20%
20103.70%
20092.89%
20083.05%
20072.08%
20062.99%
20051.92%
20041.67%
20031.27%
20021.66%
20011.06%
20000.81%
19991.12%
19981.56%
19971.71%
19962.29%
19952.95%
19942.05%
19932.41%
19922.55%
19917.20%
19907.62%
19895.50%
19884.57%

Related Countries

Germany
Germany
USA
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France
France

Calculation Methodology

Calculations are based on CPI ONS. It is a consumer price index that measures the average change in prices for goods and services purchased by the population.

Price Multiplier

Price Multiplier shows how many times prices have increased. In macroeconomics, this baseline metric is known as the Price Index Ratio. It is derived directly from official CPI data and serves as the mathematical foundation for all other calculations on this page.

Formula:
Price Multiplier(K)=CPI2026CPI1988\text{Price Multiplier} (K) = \frac{\text{CPI}_{2026}}{\text{CPI}_{1988}}
Calculation:
142.36048.395=2.9416\frac{142.360}{48.395} = 2.9416
Cumulative Inflation

To calculate the cumulative inflation since 1988, we use the following formula:

Formula:
(K−1)×100=Cumulative(%)(K - 1) \times 100 = \text{Cumulative} (\%)
Calculation:
(2.9416−1)×100=194.2%(2.9416 - 1) \times 100 = 194.2\%
Average Inflation Rate

Shows the average annual price growth rate including compound interest (where each year's inflation is added to already increased prices). To calculate the average annual inflation for 38 years since 1988, we use the following formula:

Formula:
K1n−1=Average Inflation RateK^{\frac{1}{n}} - 1 = \text{Average Inflation Rate}
n — number of years (38)
Calculation:
(2.94161/38−1)×100=2.8%(2.9416^{1/38} - 1) \times 100 = 2.8\%
Loss of Buying Power

To find out what share of its real value savings in GBP have lost since 1988, we calculate the percentage drop in purchasing power. Loss of buying power is calculated as an inverse proportion to price growth:

Formula:
(1−1K)×100=Loss of Buying Power(%)\left( 1 - \frac{1}{K} \right) \times 100 = \text{Loss of Buying Power} (\%)
Calculation:
(1−12.9416)×100=66.0%\left( 1 - \frac{1}{2.9416} \right) \times 100 = 66.0\%
Equivalent Value

To calculate the equivalent value in terms of purchasing power in 2026, we multiply the initial value from 1988 by the price growth factor:

Formula:
Original Amount×K=Equivalent\text{Original Amount} \times K = \text{Equivalent}
Calculation:
100×2.9416=294 GBP100 \times 2.9416 = 294 \text{ GBP}

Citation & Data Usage

You can use the data in your articles. Link to the source:

"Inflation in United Kingdom (1988–2026)", InflationCompare, . Accessed 18 July 2026. Data source: CPI ONS.
Inflation in United Kingdom (1988–2026)