£1 in 1788 is equivalent in purchasing power to about £0.99 in 1789.
The pound had an average **deflation** rate of -1.33% per year since 1788, producing a cumulative price change of -1.33%.
Purchasing power *increased* by 1.33% in 1789 compared to 1788. On average, you would have to spend 1.33% *less* money in 1789 than in 1788 for the same item.
This is an example of **deflation**.

This means that prices in 1789 are 1.33% lower than average prices since 1788, according to the Office for National Statistics composite price index.

The 1788 inflation rate was 4.17%. The inflation rate in 1789 was -1.33%. The 1789 inflation rate is lower compared to the average inflation rate of 2.20% per year between 1789 and 2021.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1789 was 7.40. It was 7.50 in the previous year, 1788. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1789 CPI is less than 1788 CPI, negative inflation (also known as deflation) has occurred.

⌃

Average inflation rate | -1.33% |

Converted amount (£1 base) | £0.99 |

Price difference (£1 base) | £-0.01 |

CPI in 1788 | 7.500 |

CPI in 1789 | 7.400 |

Inflation in 1788 | 4.17% |

Inflation in 1789 | -1.33% |

£1 in 1788 | £0.99 in 1789 |

Our calculations use the following inflation rate formula to calculate the change in value between 1788 and 1789:

CPI in 1789
CPI in 1788

×

1788 GBP value

=

1789 GBP value

Then plug in historical CPI values. The U.K. CPI was 7.5 in the year 1788 and 7.4 in 1789:

7.47.5

×

£1

=

£1 in 1788 has the same "purchasing power" or "buying power" as £0.99 in 1789.

To get the total inflation rate for the 1 years between 1788 and 1789, we use the following formula:

CPI in 1789 - CPI in 1788CPI in 1788

×

100

=

Plugging in the values to this equation, we get:

7.4 - 7.57.5

×

100

=

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

- The first ships of convicts sailing from England arrive in Australia, creating a penal colony
- Captain Arthur Phillip and British colonists lift the Union Flag at Sydney Cove, Australia. This day is now celebrated as Australia Day
- New Hampshire becomes the 9th state to ratify the US Constitution, after which the Constitution was put into effect.
- The Russian army, under the leadership of Grigory Potemkin, Occupy Ocharov

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 1789 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 22 Oct. 2021, https://www.officialdata.org/UK-inflation-rate-in-1789.

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 | -1.33% |

Converted amount (£1 base) | £0.99 |

Price difference (£1 base) | £-0.01 |

CPI in 1788 | 7.500 |

CPI in 1789 | 7.400 |

Inflation in 1788 | 4.17% |

Inflation in 1789 | -1.33% |

£1 in 1788 | £0.99 in 1789 |