£1 in 1996 is equivalent in purchasing power to about £1.03 in 1997. The pound had an average inflation rate of 3.14% per year between 1996 and 1997, producing a cumulative price increase of 3.14%. Purchasing power decreased by 3.14% in 1997 compared to 1996. On average, you would have to spend 3.14% more money in 1997 than in 1996 for the same item.

This means that prices in 1997 are 1.03 times higher than average prices since 1996, according to the Office for National Statistics composite price index.

The inflation rate in 1996 was 2.41%. The inflation rate in 1997 was 3.14%. The 1997 inflation rate is higher compared to the average inflation rate of 2.74% per year between 1997 and 2021.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1997 was 621.30. It was 602.40 in the previous year, 1996. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

⌃

Average inflation rate | 3.14% |

Converted amount (£1 base) | £1.03 |

Price difference (£1 base) | £0.03 |

CPI in 1996 | 602.400 |

CPI in 1997 | 621.300 |

Inflation in 1996 | 2.41% |

Inflation in 1997 | 3.14% |

£1 in 1996 | £1.03 in 1997 |

Our calculations use the following inflation rate formula to calculate the change in value between 1996 and 1997:

CPI in 1997
CPI in 1996

×

1996 GBP value

=

1997 GBP value

Then plug in historical CPI values. The U.K. CPI was 602.4 in the year 1996 and 621.3 in 1997:

621.3602.4

×

£1

=

£1 in 1996 has the same "purchasing power" or "buying power" as £1.03 in 1997.

To get the total inflation rate for the 1 years between 1996 and 1997, we use the following formula:

CPI in 1997 - CPI in 1996CPI in 1996

×

100

=

Plugging in the values to this equation, we get:

621.3 - 602.4602.4

×

100

=

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

- The Motorola StarTAC, the first clamshell flip phone, goes on sale worldwide.
- Osama bin Laden issues "A declaration of war against the Americans occupying the land of the two holy places".
- Bill Clinton signs the Welfare Reform Bill into law.

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 1997 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 7 Dec. 2021, https://www.officialdata.org/UK-inflation-rate-in-1997.

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 | 3.14% |

Converted amount (£1 base) | £1.03 |

Price difference (£1 base) | £0.03 |

CPI in 1996 | 602.400 |

CPI in 1997 | 621.300 |

Inflation in 1996 | 2.41% |

Inflation in 1997 | 3.14% |

£1 in 1996 | £1.03 in 1997 |