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There are a number of other price indices available. You can find some alternatives in our A millennium of macroeconomic data spreadsheet and Professor Clark’s study The Macroeconomic Aggregates for England 1209-1869.

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The website measuringworth.com has a calculator based on different measures of comparative value such as the Gross Domestic Product (GDP) deflator, average earnings, and GDP per head. These measures may be more useful depending on what you’re trying to do. For example, a calculator based on average earnings might be better if you want to compare wages, income or wealth over time.

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The inflation calculator also tells you the average yearly inflation rate between two years or months (current year only). The formula for this, again using the example of 1975 to 1985, is:

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If prices fell between the two years you put into the calculator, average inflation will be negative. This is called deflation.

Over long periods, the definitions of goods and services included in the price index have changed. For example, a family’s food and clothes today are very different to those of a typical family a hundred years ago.

The calculator uses the Consumer Price Index (CPI) as this is the measure used by the Government to set the Bank of England’s target for inflation. An alternative credible measure, which is the ONS’s lead measure of inflation, is the Consumer Price Index including Owner Occupiers’ Housing Costs (CPIH).

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\[\textit{Average inflation} = \left( \left( \left( \frac{\textit{1985 price index}}{\textit{1975 price index}} \right) ^{0.1} \right) - 1 \right) \times 100\]

This looks a bit complicated, but it just shows that on average prices rose by 9.6% a year between 1975 and 1985. By the way, “0.1” means that the change in prices is ‘raised to the power of one tenth’ to calculate the average inflation rate over ten years.

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Please note: the estimates in the calculator from 1949 onwards have been updated with revised CPI estimates from the ONS published in May 2022.

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We use several sources to create our calculator. For dates from 1750 until 1948 we use the Office for National Statistics’ (ONS) Composite Price Index. Before 1947 no single price index exists so the ONS use price data linked together from several different published sources. We use the ONS’s estimates of the Consumer Price Index from 1949 onwards, which we use to update our calculator each year.

Changes in household spending also reflect higher incomes and the wider range of goods and services available to buy today. These new goods and services are included in today’s price index, but not in earlier versions.

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For example, say you input the dates 1920 and 1933. The calculator reveals that inflation averaged -3.5%, because prices fell in almost every year between 1920 and 1933.

The calculations are approximate and only give a rough guide to the buying power of the pound for goods and services purchased in the UK.

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The calculator uses Consumer Price Index (CPI) inflation data from the Office for National Statistics from 1988 onward. Monthly calculations of the current year are based on the latest CPI level, whereas previous years use their calendar year averages. CPI estimates before 1988 are modelled based on data collected for the Retail Price Index (RPI).

Overall, these features of the data mean that comparisons of prices further back in time and over long periods are less accurate than comparisons over short periods in recent years.