Inflation in the UK over the ten years 1953-1962
Sources: pages in an old account book
At the end of every year, my father summarised the family's monthly outgoings for that year and entered them into a 'by-year' page at the end of his account book. The following image is a thumbnail for the years 1953-1962. A larger, legible version can be seen by tap/clicking the thumbnail.
Accounts as a basis for calculating inflation
I assumed - wrongly as it turned out - that comparing the outgoings recorded in 1953 with those recorded in 1962 would give a good measure for inflation during that period.
Problems with calculating an accurate value for inflation
It was indeed straightforward to put expenditures in 1953 side-by-side with expenditures in 1962 and calculate how much more money my father needed or spent in 1962 compared with in 1953. However, as I looked down the itemised list, I realised that this figure could not be generalised for other families because so many changes could be due to circumstances other than inflation. For example:
We were a family of three: my father, my mother and me (a child at the time), and although prices per unit of the same items might be the same for other families, there are always economies in scale.
Mortgages. Repayments like those on our house remained constant throughout the lifetime of the mortgage because they had been set up on a fixed rate. So there was no change in the ten years, giving an apparent inflation of zero. Other families may have set their mortgage up at a different time at a different fixed rate or a variable one.
Heating expenses. In the early 1950s most people heated with coal fires, but by the late 1950s it became increasingly common for families to convert to central heating. Ours ran from oil, which was the cheapest fuel at that time, and then from gas after oil prices were increased fourfold. Other families may have used different fuels.
Travel. My father changed his job during the ten year period and this necessitated different travel costs independent of the rate of inflation.
House repairs need attention intermittently and at haphazard rates. So there is no way of knowing how other families might have been affected.
Furnishings costs and holiday costs are haphazard depending on whims, necessity and availability of money. In the early 1960s many families were taking advantage of the relatively new package holidays abroad which were a considerable expenditure.
Items like a car and a television were not parts of our lives in 1953, but they were becoming increasingly popular during the following years.
These are just examples. My conclusion was that my father's account book could be used to calculate inflation of particular items of expenditure over specific periods but that the time and effort required to tease out the appropriate data would be significant and probably not worth the effort.
Yet there were a few exceptions:
Some reasonably accurate measures of inflation
I saw no reason why the percentage changes of general rates (now council tax), water rates and electricity in our household would be much different from those in any other house. So they would serve to give a reasonable estimate of inflation for the ten year period of 1953 to 1962. The calculation is shown in the following table. In summary:
Inflation in the cost of electricity
The calculation gives the percentage inflation in electricity costs in the ten year period of 1953-1962 as 32%. Bearing in mind that there were different suppliers and that some families would have used more electricity than others, it is probably safe to give a figure of around 30%.
Inflation in rates/council tax 1953-1962
The calculation gives the percentage inflation for general rates in the ten year period of 1953-1962 as 36%. Bearing in mind that sizes of houses are different, it is probably safe to give a figure of 30-40%.
Inflation in the costs of water
The cost of water apparently decreased slightly over the ten year period of 1953-1962, so slightly that it may have been the 'noise in the system'. I remember that water was regarded then as an essential that people shouldn't have to pay for by volume used
Alternative indicators of inflation
I felt that the inflation in housekeeping costs (ie for food and cleaning) might be somewhat generalisable across households, but that it would need to be averaged out for a single adult individual. Yet some of the household could be children, and tastes in food and money available would vary from one household to another. Yet here is the data for what it is worth.
So, based on my father's figures, a reasonable estimate for the inflation in the costs of food and other household items between 1953 and 1962 was nearly 50%. No wonder there were strikes for more pay!
Data from other sources
For more detailed calculations of inflation, you might be interested in the following data from other sources.
Costs of common items in 1961
When I was a student at the University of Sheffield, I moved to Stephenson Hall in 1961. While there I kept detailed records of my finances. These were of course in pre-decimal currency.
I paid £58.15.6 for Hall fees in the Autumn term of 1961; £52.17.6 in the Spring Term; and £66.11.0 in the Summer Term. The differences were due to a deposit against damage in Term one, and extra weeks purchased during the Easter vacation just before finals. These fees covered a private study/bedroom, breakfast and evening meal on weekdays, and lunch at weekends.
My incidental expenses amounted to around £20 each term. There were no credit cards in those days, nor any ATMs. Each withdrawal involved a visit to the bank, and the payment of 2d (less than 1p in today's money) to cover the stamp duty on each financial transaction.
My records on the costs of various items are indications of inflation and make fascinated reading:
Typical bus fares were between 2½d (tuppence ha'penny) and 5d [about 1p to 2p]
Lunch in the Students' Union was 1/7 [one shilling and seven pence] [8 new pence]
A cinema visit was between 2/3 and 5/- [11p. to 25p]
Shaving foam was 6/10 [34 pence]
Razor blades were 2/6 [12½p]
A Cornish pasty was 10d [3p.]
Shoe repair was 12/3 [61p.]
A loaf of bread was 8d [3½p]
Half a pint of milk was 4d [1½p]
The Hall tie was £1 [£1]
A haircut was 2/6 [12½p]
A pint of (probably) Mackesons stout was 1/6 [7½p]
Fish and chips were 1/3 [6p]
The train fare home was 15/6 [77½p]
Toothpaste was 2/-[10p]
An extended Hall roll photograph was 5/- [25p][These extended photos were common at the time. There is a picture of one in my own school photos.]
The cost of stress was evidenced by the purchase of sleeping tablets 2/6 [12½p], Pro-Plus (Waking-up tablets !) 4/6 [22½p], Aspirins 1/- [5p] and NHS prescriptions 2/- [10p].].
Costs of less common items
There were occasional splurges, only possible because of the frugality exercised day-to-day, and the work done over Christmas as a temporary postman. I clocked up 77¼ hours in 7 days in December 1961, for which I was paid £14/14/9 [Fourteen pounds, fourteen shillings and nine pence]. That equated to 3/- an hour [15 pence in new money].
Examples of such extravagance were attendance at the French Society's Dinner and Dance, the tickets for which cost 8/6 [42½p], a round of drinks 5/2 [26p]. (I can't think how I got caught with that!), and 7/- [35p] for wine. Then there was a Wine Tasting, presumably organised by the same group, setting me back 7/6 [37½p], and on another occasion, a bottle of wine for a Bring a Bottle party 10/3 [51p]! Sitting on the staircase feeling most uncomfortable convinced me to avoid such invitations wherever possible in future.
I was able to buy my own academic dress from my earnings, and pay for a cheap camping holiday at Sanary sur Mer on the Riviera.
By the following year, both bread and milk had increased by ½d [0.4p] and razor blades were now 3/6 [17½p]. Dinners at teaching practice schools, which had cost 2/- a time in the autumn, had become 2/1.
Now, I was more boldly daring to purchase my own clothes, a green corduroy jacket £7.10.0 [£7.50], Trousers £4.10.0 [£4.50], Shoes £3.15.11 [£3.79½] and Track suit £1.5.0 [£1.25].
I splashed out on a portable typewriter, £26.15.0 [£26.75], and it cost £9.5.0 [£9.25] extra to attend a residential course in Surrey with the Education Department towards the end of the Autumn Term.
Looking ahead, I had arranged a summer break in Southern Ireland, and bought an advance ferry ticket from Liverpool to Dun Laoghaire at £2.8.0 [£2.40].
Wages and inflation (1950-1955)
I was a wages clerk in the 1950s and when we made up the pay packets. The foremen, who often worked abroad, were paid a flat rate of £15.00 and they were the only ones who got the black and white five pound notes in their packets. I earned £7.50 per week and this was increased to £9.00 per week when I got married in 1955.