Inflation in 2008 and its effect on pound value
£1 in 2007 is equivalent in purchasing power to about £1.04 in 2008. The pound had an average inflation rate of 3.99% per year between 2007 and 2008, producing a cumulative price increase of 3.99%. Purchasing power decreased by 3.99% in 2008 compared to 2007. On average, you would have to spend 3.99% more money in 2008 than in 2007 for the same item.
This means that prices in 2008 are 1.04 times as high as average prices since 2007, according to the Office for National Statistics composite price index.
The inflation rate in 2007 was 4.29%. The inflation rate in 2008 was 3.99%. The 2008 inflation rate is higher compared to the average inflation rate of 3.27% per year between 2008 and 2024.
Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2008 was 847.50. It was 815.00 in the previous year, 2007. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.
⌃
| Average inflation rate | 3.99% |
| Converted amount £1 base | £1.04 |
| Price difference £1 base | £0.04 |
| CPI in 2007 | 815.000 |
| CPI in 2008 | 847.500 |
| Inflation in 2007 | 4.29% |
| Inflation in 2008 | 3.99% |
| £1 in 2007 | £1.04 in 2008 |
How to calculate inflation rate for £1, 2007 to 2008
Our calculations use the following inflation rate formula to calculate the change in value between 2007 and 2008:
CPI in 2008 CPI in 2007
×
2007 GBP value
=
2008 GBP value
Then plug in historical CPI values. The U.K. CPI was 815 in the year 2007 and 847.5 in 2008:
847.5815
×
£1
=
£1.04
£1 in 2007 has the same "purchasing power" or "buying power" as £1.04 in 2008.
To get the total inflation rate for the 1 years between 2007 and 2008, we use the following formula:
CPI in 2008 - CPI in 2007CPI in 2007
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
847.5 - 815815
×
100
=
4%
Data source & citation
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 the current year, which is based on The Bank of England's forecast.
You may use the following MLA citation for this page: “Inflation Rate in 2008 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 21 Nov. 2024, https://www.officialdata.org/UK-inflation-rate-in-2008.
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 | 3.99% |
| Converted amount £1 base | £1.04 |
| Price difference £1 base | £0.04 |
| CPI in 2007 | 815.000 |
| CPI in 2008 | 847.500 |
| Inflation in 2007 | 4.29% |
| Inflation in 2008 | 3.99% |
| £1 in 2007 | £1.04 in 2008 |