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# Inflation calculator - British Pound

This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.

£100 in 1955
£2,590.91 in 2023

The inflation rate in the United Kingdom between 1955 and 2023 was 2,490.91%, which translates into a total increase of £2,490.91. This means that 100 pounds in 1955 are equivalent to 2,590.91 pounds in 2023. In other words, the purchasing power of £100 in 1955 equals £2,590.91 in 2023. The average annual inflation rate between these periods was 4.9%.

## Inflation timeline in the United Kingdom (1955 - 2023)

The following chart depicts the equivalence of £100 due to compound inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.

All calculations are performed in the local currency (GBP) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation from 1955 to 2023 2,490.91%
Avg. Annual inflation from 1955 to 2023 4.9%
CPI 1955 4.96
CPI 2023 128.6

## How to calculate the time value of money with inflation data?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.

### Using the CPI formula

When we have both the start and end years, we can use the following formula:

Valuet =Value0 ×
CPIt/CPI0

To obtain the values equivalent in buying power between 1955 and 2023, use the corresponding CPI values:

Value2023
=Value1955 ×
CPI2023/CPI1955
=£ 100 ×
128.6/4.96
£2,590.91

### Alternative: Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: FV = PV × (1 + i)n, where:

• FV: Future Value
• PV: Present Value
• i: Interest rate (inflation)
• n: Number of times the interest is compounded (i.e. # of years)

In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are £100 worth today. There are 68 years between 1955 and 2023 and the average inflation rate was 4.9026%. Therefore, we can resolve the formula like this:

Value2023
=PV × (1 + i)n
=£100 × (1 + 0.049026)68
£2,590.91

## UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1955 £25.91 pounds in 2023
£5 pounds in 1955 £129.55 pounds in 2023
£10 pounds in 1955 £259.09 pounds in 2023
£50 pounds in 1955 £1,295.45 pounds in 2023
£100 pounds in 1955 £2,590.91 pounds in 2023
£500 pounds in 1955 £12,954.54 pounds in 2023
£1,000 pounds in 1955 £25,909.09 pounds in 2023
£5,000 pounds in 1955 £129,545.45 pounds in 2023
£10,000 pounds in 1955 £259,090.9 pounds in 2023
£50,000 pounds in 1955 £1,295,454.49 pounds in 2023
£100,000 pounds in 1955 £2,590,908.97 pounds in 2023
£500,000 pounds in 1955 £12,954,544.86 pounds in 2023
£1,000,000 pounds in 1955 £25,909,089.72 pounds in 2023
 Cumulative inflation 1955-2023 2,490.91% Avg. annual inflation 1955-2023 4.9% CPI 1955 4.96 CPI 2023 128.6

### Value of Pound over time (by year)

Period Value
1955 100
1956 104.98
1957 108.86
1958 112.11
1959 112.77
1960 113.9
1961 117.82
1962 122.77
1963 125.25
1964 129.36
1965 135.53
1966 140.83
1967 144.33
1968 151.1
1969 159.34
1970 169.48
1971 185.49
1972 198.6
1973 216.87
1974 251.66
1975 312.58
1976 364.34
1977 422.05
1978 456.93
1979 518.25
1980 611.36
1981 683.97
1982 742.79
1983 777.03
1984 815.57
1985 865.09
1986 894.74
1987 931.86
1988 971.09
1989 1,027.5
1990 1,110.1
1991 1,192.7
1992 1,247.1
1993 1,279.34
1994 1,307.54
1995 1,341.79
1996 1,380.07
1997 1,410.29
1998 1,436.48
1999 1,462.67
2000 1,478.79
2001 1,502.97
2002 1,525.13
2003 1,545.28
2004 1,567.44
2005 1,599.67
2006 1,639.97
2007 1,678.25
2008 1,736.67
2009 1,770.92
2010 1,815.25
2011 1,885.76
2012 1,934.12
2013 1,978.44
2014 2,006.64
2015 2,014.7
2016 2,034.85
2017 2,087.23
2018 2,135.59
2019 2,171.85
2020 2,194.01
2021 2,248.41
2022 2,427.72
2023 2,590.91

All available years

Today's value of british pounds by year:

1955 | 1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |

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