UK real effective exchange rate: broad basket
UK real effective exchange rate: broad basket stood at 112.33 in Aug 2026, according to Bank for International Settlements (BIS). It is one of the indicators in the Effective exchange rate table (Value · Monthly), with a complete series running from Jan 1994 to Aug 2026. The complete series with an interactive chart, free to download.
This indicator in the Effective exchange rate table
| Indicator | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | 11-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Real, broad basket (64 economies) | 112.33 | 112.26 | 111.08 | 111.24 | 110.93 | 110.96 | 111.09 | 111.71 | 111.62 | 110.22 | |
| Nominal, broad basket (64 economies) | 112 | 111.74 | 110.6 | 110.87 | 110.61 | 110.73 | 110.89 | 111.14 | 110.6 | 109.48 | |
| Real, narrow basket (27 economies) | 111.46 | 111.72 | 110.52 | 110.22 | 109.9 | 109.94 | 110.24 | 110.64 | 110.11 | 108.69 |
Understanding UK real effective exchange rate: broad basket
Encompassing sixty-four partner economies, this index measures the inflation-adjusted external purchasing power of the currency for the United Kingdom. By factoring in relative consumer price indices across a large trading network, the series strips out domestic versus foreign inflation differentials to reveal changes in international price competitiveness. Unlike narrower cohorts, this broad basket captures transactions with a vast array of developing and developed markets alike. It differs from its nominal counterpart by accounting for cost divergences, making it the preferred gauge for analysing underlying trade shifts over extended horizons.
Interpreting this measure requires careful attention to historical base year updates and weight revisions that periodically alter index levels. Analysts should rely on twelve-month comparisons rather than sequential monthly movements to bypass typical short-term noise and recurring pricing patterns. Revisions to partner country inflation figures frequently lead to retrospective adjustments in early estimates, meaning preliminary figures are subject to change. A common pitfall involves treating this metric as a bilateral rate against a single currency, whereas it actually reflects a complex geometric average across scores of distinct trading relationships simultaneously.
Frequently asked questions
- Why does this index adjust for inflation differences?
- Adjusting for relative price changes ensures that shifts in the measure reflect true shifts in international competitiveness rather than differing domestic and foreign inflation rates.
- How frequently are the partner weights updated?
- Weights and constituent economies undergo periodic reviews to reflect shifting trade shares, which can introduce small step breaks in the historical time series.
- Is this series suitable for tracking daily currency trading?
- No, because the inclusion of broad consumer price data means the series is published at a monthly frequency and incorporates lagged price indices.