Sean on Nostr: The compounded cost of inflation from 2020 to 2024 in the UK was 23.04%. This mean ...

The compounded cost of inflation from 2020 to 2024 in the UK was 23.04%. This mean that prices were around 23% higher than they were in 2020 compared to 2024.



According to the report released today by the OBR (https://obr.uk/download/economic-and-fiscal-outlook-october-2024/?tmstv=1730299447) The compounded inflation over the forecast period from 2024 to 2029 is approximately 13.28%. This means that by 2029, our UK pounds are going to have ~39% less purchasing power than they did in 2020.

Eg.

2020: £100 buys £100 worth of goods (baseline).

2021: With 0.9% inflation, your £100 buys £99.10 worth of goods.

2022: With 2.6% inflation, it buys £96.50 worth of goods.

2023: With 9.1% inflation, it buys £87.74 worth of goods.

2024: With 6.8% inflation, it buys £81.78 worth of goods.

2025: With 2% inflation, it buys £80.14 worth of goods.

2026: With 2.6% inflation, it buys £78.10 worth of goods.

2027: With 2% inflation, it buys £76.54 worth of goods.

2028: With 2% inflation, it buys £75.01 worth of goods.

2029: With 2% inflation, it buys £73.51 worth of goods.