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🇬🇧 UK Inflation Calculator

Calculate how inflation affects your money's value and predict future purchasing power.

Future Purchasing Power
Equivalent Amount Needed Purchasing Power Loss Total Inflation
ScenarioLowBaseHigh
Future Purchasing Power
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GUIDE

Learn more

01

A user-assumption calculator

Enter your own annual assumption. This page does not fetch a current inflation reading. The base scenario is your input; low and high are one percentage point below and above it, with the low rate never below 0%.

02

Measures and sources

CPIH, CPI and RPI are distinct official measures, not interchangeable values in this calculator. For the latest releases, consult the <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest">ONS inflation bulletin</a>; Bank Rate history is published by the <a href="https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp">Bank of England</a>.

03

Method and limits

Purchasing power = amount ÷ (1 + rate)^years. The result is an illustration based on a constant annual assumption, not a forecast, personal financial advice, or a current official statistic.

Frequently asked questions

How is inflation calculated?
Future Value = Current Amount × (1 + inflation rate)^years. Purchasing power is the current amount divided by that multiplier.
What is purchasing power loss?
It is the reduction in goods and services your money can buy. With a constant 2.5% assumption for 10 years, purchasing power falls by about 21.9%.
TRUST & SOURCES

Methodology and official sources

the UK inflation calculation explains its inputs, assumptions, and calculation scope.

Official status
Reference calculator; it does not make an official determination.
Effective date
Last reviewed

Method

It applies the entered price and inflation rate: future value = present value × (1 + rate)^years to the entered values.

Worked example

£100 rising by 3% for one year becomes £103.

Limitations

  • Rates, rules, and individual circumstances can change the result.

Sources