£1 in 2003 is equivalent in purchasing power to about £1.03 in 2004. The pound had an average inflation rate of 2.98% per year between 2003 and 2004, producing a cumulative price increase of 2.98%. Purchasing power decreased by 2.98% in 2004 compared to 2003. On average, you would have to spend 2.98% more money in 2004 than in 2003 for the same item.

This means that prices in 2004 are 1.03 times higher than average prices since 2003, according to the Office for National Statistics composite price index.

The inflation rate in 2003 was 2.89%. The inflation rate in 2004 was 2.98%. The 2004 inflation rate is higher compared to the average inflation rate of 2.85% per year between 2004 and 2021.

Inflation rate is calculated by change in the composite price index (CPI). The CPI in 2004 was 736.50. It was 715.20 in the previous year, 2003. The difference in CPI between the years is used by the Office for National Statistics to officially determine inflation.

⌃

Average inflation rate | 2.98% |

Converted amount (£1 base) | £1.03 |

Price difference (£1 base) | £0.03 |

CPI in 2003 | 715.200 |

CPI in 2004 | 736.500 |

Inflation in 2003 | 2.89% |

Inflation in 2004 | 2.98% |

£1 in 2003 | £1.03 in 2004 |

Our calculations use the following inflation rate formula to calculate the change in value between 2003 and 2004:

CPI in 2004
CPI in 2003

×

2003 GBP value

=

2004 GBP value

Then plug in historical CPI values. The U.K. CPI was 715.2 in the year 2003 and 736.5 in 2004:

736.5715.2

×

£1

=

£1 in 2003 has the same "purchasing power" or "buying power" as £1.03 in 2004.

To get the total inflation rate for the 1 years between 2003 and 2004, we use the following formula:

CPI in 2004 - CPI in 2003CPI in 2003

×

100

=

Plugging in the values to this equation, we get:

736.5 - 715.2715.2

×

100

=

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

- Despite a lack of support from the United Nations, a coalition lead by America and Britain invades Iraq.
- Baghdad falls, ending the invasion of Iraq.
- 10 new members are admitted to the European Union after signing the Treaty of Accession in Athens.

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 2004 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Dec. 2021, https://www.officialdata.org/UK-inflation-rate-in-2004.

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 | 2.98% |

Converted amount (£1 base) | £1.03 |

Price difference (£1 base) | £0.03 |

CPI in 2003 | 715.200 |

CPI in 2004 | 736.500 |

Inflation in 2003 | 2.89% |

Inflation in 2004 | 2.98% |

£1 in 2003 | £1.03 in 2004 |