£1 in 1921 is equivalent in purchasing power to about £0.86 in 1922.
The pound had an average **deflation** rate of -13.85% per year since 1921, producing a cumulative price change of -13.85%.
Purchasing power *increased* by 13.85% in 1922 compared to 1921. On average, you would have to spend 13.85% *less* money in 1922 than in 1921 for the same item.
This is an example of **deflation**.

This means that prices in 1922 are 13.85% lower than average prices since 1921, according to the Office for National Statistics composite price index.

The inflation rate in 1921 was -8.70%. The inflation rate in 1922 was -13.85%. The 1922 inflation rate is lower compared to the average inflation rate of 4.22% per year between 1922 and 2021.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 1922 was 19.90. It was 23.10 in the previous year, 1921. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation. Because the 1922 CPI is less than 1921 CPI, negative inflation (also known as deflation) has occurred.

⌃

Average inflation rate | -13.85% |

Converted amount (£1 base) | £0.86 |

Price difference (£1 base) | £-0.14 |

CPI in 1921 | 23.100 |

CPI in 1922 | 19.900 |

Inflation in 1921 | -8.70% |

Inflation in 1922 | -13.85% |

£1 in 1921 | £0.86 in 1922 |

Our calculations use the following inflation rate formula to calculate the change in value between 1921 and 1922:

CPI in 1922
CPI in 1921

×

1921 GBP value

=

1922 GBP value

Then plug in historical CPI values. The U.K. CPI was 23.1 in the year 1921 and 19.9 in 1922:

19.923.1

×

£1

=

£1 in 1921 has the same "purchasing power" or "buying power" as £0.86 in 1922.

To get the total inflation rate for the 1 years between 1921 and 1922, we use the following formula:

CPI in 1922 - CPI in 1921CPI in 1921

×

100

=

Plugging in the values to this equation, we get:

19.9 - 23.123.1

×

100

=

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

- The Chinese Communist Party is founded by Chen Duxiu.
- Alice Mary Robertson becomes the first woman to preside over the United States House of Representatives.
- Adolf Hitler is declared leader of the National Socialist German Workers Party.

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 1922 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Dec. 2021, https://www.officialdata.org/UK-inflation-rate-in-1922.

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 | -13.85% |

Converted amount (£1 base) | £0.86 |

Price difference (£1 base) | £-0.14 |

CPI in 1921 | 23.100 |

CPI in 1922 | 19.900 |

Inflation in 1921 | -8.70% |

Inflation in 1922 | -13.85% |

£1 in 1921 | £0.86 in 1922 |