Inflation United Kingdom 1987

Average inflation: 4.2%

Inflation in 1987

Inflation is high at 4.2%, well above the ECB target.

Peak and Trough

The highest inflation was in October at 4.5%. The lowest inflation was in December at 3.7%.

Highest month
October: 4.5%
Lowest month
December: 3.7%
Difference
0.8 percentage points
Months with data
12 of 12

Historical Context

Inflation is around the 5-year average of 4.7%.

5-year average
4.7%
10-year average
8.4%
All-time high (1975)
24.1%
All-time low (1986)
3.4%

Trend

Over the period 1985-1987, inflation shows a downward trend. Compared to 1986, inflation has risen by 0.8 percentage points.

Change vs. previous year
+0.8 percentage points
Largest monthly swing
July: +2.0 percentage points

ECB Target

Inflation is 2.2 percentage points above the ECB target of 2.0%. This means purchasing power is declining faster than intended.

Purchasing Power

At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.

What you could buy for £100 this year will cost approximately £104.20 next year at this inflation rate.

Multi-year trend

Monthly figures 1987

Inflation by category

Food and non-alcoholic beverages
3.1%
-1.1 vs avg.

Inflation differs per product group. Click on a category for the historical trend.

Month overview

Month Inflation Difference vs. 1986
January 4.0% -1.5
February 3.9% -1.2
March 4.0% -0.2
April 4.2% +1.1
May 4.2% +1.5
June 4.2% +1.7
July 4.4% +2.0
August 4.4% +2.0
September 4.2% +1.2
October 4.5% +1.5
November 4.1% +0.6
December 3.7% -0.1
Average 4.2%

Data source

Data from OECD. Last updated: 17/12/2025.

See also