£1 in 1973 is equivalent in purchasing power to about £1.16 in 1974. The pound had an average inflation rate of 16.04% per year between 1973 and 1974, producing a cumulative price increase of 16.04%. Purchasing power decreased by 16.04% in 1974 compared to 1973. On average, you would have to spend 16.04% more money in 1974 than in 1973 for the same item.

This means that prices in 1974 are 1.16 times higher than average prices since 1973, according to the Office for National Statistics composite price index.

The inflation rate in 1973 was 9.10%. The inflation rate in 1974 was 16.04%. The 1974 inflation rate is higher compared to the average inflation rate of 5.22% per year between 1974 and 2021.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1974 was 108.50. It was 93.50 in the previous year, 1973. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

⌃

Average inflation rate | 16.04% |

Converted amount (£1 base) | £1.16 |

Price difference (£1 base) | £0.16 |

CPI in 1973 | 93.500 |

CPI in 1974 | 108.500 |

Inflation in 1973 | 9.10% |

Inflation in 1974 | 16.04% |

£1 in 1973 | £1.16 in 1974 |

Our calculations use the following inflation rate formula to calculate the change in value between 1973 and 1974:

CPI in 1974
CPI in 1973

×

1973 GBP value

=

1974 GBP value

Then plug in historical CPI values. The U.K. CPI was 93.5 in the year 1973 and 108.5 in 1974:

108.593.5

×

£1

=

£1 in 1973 has the same "purchasing power" or "buying power" as £1.16 in 1974.

To get the total inflation rate for the 1 years between 1973 and 1974, we use the following formula:

CPI in 1974 - CPI in 1973CPI in 1973

×

100

=

Plugging in the values to this equation, we get:

108.5 - 93.593.5

×

100

=

Politics and news often influence economic performance. Here's what was happening at the time:

- President Richard Nixon announces the end of the Vietnam War.
- The longest war in American history finishes after William Rogers and Nguyen Duy Trinh of US and North Vietnam's army sign a cease-fire.
- The IRA attacks London for the first time following the arrests of 10 of its members.
- The Senate Watergate Committee begins its hearings.

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 1974 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 7 Dec. 2021, https://www.officialdata.org/UK-inflation-rate-in-1974.

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

in2013dollars.com is a reference website maintained by the Official Data Foundation.

Average inflation rate | 16.04% |

Converted amount (£1 base) | £1.16 |

Price difference (£1 base) | £0.16 |

CPI in 1973 | 93.500 |

CPI in 1974 | 108.500 |

Inflation in 1973 | 9.10% |

Inflation in 1974 | 16.04% |

£1 in 1973 | £1.16 in 1974 |