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UK Inflation 1975 to 2007



UK Inflation 1975 to 2007 chart below shows how the UK has battled with inflation from 1975. It has to be said that in 1974, inflation was at 25% - outrageous! You couldn't think of that today!

Happily, the EU's standard which is now manifested in the Consumer Price Index (CPI), means that financial constraints are in place throughout Euroland to protect consumers from an out of control economy. Having said that, inflation is always a threat. Here's the chart:

UK Inflation 1975 to 2007

Source: Office For National Statistics

The rise in inflation in the late 80's was due to the Chancellor's policy of shadowing the EMU Exchange rate. This allowed inflation to take hold again and and created the 'loadsamoney' economy, which sadly came to an end when interest rates managed to get to just under 15% and heralded the bust of the property market with the very unpopular 'negative equity'.



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