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United Kingdom - Inflation

 
 Inflation Rate United Kingdom % PA
 2010 - Q4  2011 - Q1  2011 - Q2  2011 - Q3
 Oct  Nov  Dec  Jan  Feb  Mar  Apr  May  Jun  Jul  Aug  Sept
 
3.13 %
  
3.21 %
  
3.73 %
  
4.00%
  
4.34 %
  
4.05 %
  
4.47 %
  
4.46 %
4.19 %
4.46 %
  
4.50 %
  
5.20 %
 2011 - Q4 2012 - Q1 2012 - Q2 2012 - Q3
 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
 
5.00 %
 
4.80 %
 
 4.20 %
 
3.60 %
 
 3.40 %
 
3.50 % 
 
3.02 % 
 
2.76 % 

2.40 %

2.60 %
 
2.50 %
 
 2.20 %
 2012 - Q4 2013 - Q1 2013 - Q2 2013 - Q3
 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
 
2.70 %
 
2.70 %
 
 2.70 %
 
2.70 %
 
 2.80 %
 
2.80 % 
 
2.40 % 
 
2.70 % 

2.90 %

2.80 %
 
2.70 % 
 
 - %

In the chart below you can see that £100 British Pound  in year 1900 had the some Purchasing  Power  like £9,636 British Pound in 2011.

In simple words, whatever you could purchase with £100 British Pound in year 1900, you have to spend £9,636 British Pound in 2008 to purchase
more or less the some goods.


The Gold Standard was abandoned in 1971 and had huge impact on inflation resulting in losing the value of money faster. See chart above.

In 2008 the present value of £100 British Pound in year 1900 is £6,343 British Pound .

The average inflation rate in UK over 1901-2008 period is 4.454% PA.

The average inflation rate in UK over 1901-1971 period is 3.335% PA.This is the average inflation rate in UK over US Gold Standard period.

The average inflation rate in UK over 1971-2008 period is 6.976% PA. This is the average inflation rate in UK after US Gold Standard period.

The Bank of England (BOE) inflation target is 2 % PA.

UK inflation rate in January 2013 is 2.7 %.

UK dropped Gold Standard in 1931.















When US dropped Gold Standard in 1971, Inflation started to accelerate in UK as well as other countries.