Value of 1956 British Pounds today

£100 in 1956

£1,984.29 in 2018

The inflation rate in United Kingdom between 1956 and today has been 1,884.29%, which translates into a total increase of £1,884.29. This means that 100 pounds in 1956 are equivalent to 1,984.29 pounds in 2018. In other words, the purchasing power of £100 in 1956 equals £1,984.29 today. The average annual inflation rate has been 4.86%.

Inflation timeline in United Kingdom (1956-2018)

The following chart ilustrates the equivalence of £100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchashing 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. Today's values were obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1956-2018) 1,852.67%
Total Inflation* 1,884.29%
Annual inflation avg. (1956-2018) 4.91%
Annual inflation avg.* 4.86%
CPI 1956 5.38
CPI 2018 105
CPI today* 106.7
£1 in 1956 £19.53 in 2018

* Values extrapolated from the last official data to obtain today's values.

How to calculate today's value of money after inflation?

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

Using the compound interest formula

Given that money changes in time as a result of an inflation rate that acts as a compound interest, the following formula can be used: 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 62 years between 1956 and 2018 and the average inflation rate has been 4.8569%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.05)62 = £1,952.67

Using the CPI formula

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *
CPI final/CPI initial

In this case, the CPI in 1956 was 5.38 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/5.38
= £1,952.67

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1956 £19.84 pounds today
£5 pounds in 1956 £99.21 pounds today
£10 pounds in 1956 £198.43 pounds today
£50 pounds in 1956 £992.15 pounds today
£100 pounds in 1956 £1,984.29 pounds today
£500 pounds in 1956 £9,921.47 pounds today
£1,000 pounds in 1956 £19,842.94 pounds today
£5,000 pounds in 1956 £99,214.68 pounds today
£10,000 pounds in 1956 £198,429.36 pounds today
£50,000 pounds in 1956 £992,146.78 pounds today
£100,000 pounds in 1956 £1,984,293.57 pounds today
£500,000 pounds in 1956 £9,921,467.84 pounds today
£1,000,000 pounds in 1956 £19,842,935.69 pounds today

Value of Pound in time (by year)

Period Value
1956 100
1957 103.04
1958 107.83
1959 109.82
1960 109.82
1961 111.81
1962 116.7
1963 119.79
1964 122.01
1965 127.87
1966 133.61
1967 138.52
1968 141.92
1969 150.35
1970 157.38
1971 169.79
1972 185.13
1973 199.3
1974 220.37
1975 262.54
1976 327.9
1977 377.31
1978 423.13
1979 458.61
1980 537.67
1981 618.97
1982 693.53
1983 731.04
1984 769.89
1985 805.15
1986 850.6
1987 882.5
1988 915.28
1989 956.89
1990 1,009.84
1991 1,085.48
1992 1,164.91
1993 1,195.16
1994 1,223.53
1995 1,248.11
1996 1,285.94
1997 1,314.3
1998 1,336.99
1999 1,357.8
2000 1,372.92
2001 1,384.27
2002 1,399.4
2003 1,422.09
2004 1,441
2005 1,463.7
2006 1,493.33
2007 1,536.1
2008 1,571.43
2009 1,619.78
2010 1,653.26
2011 1,705.33
2012 1,766.7
2013 1,809.47
2014 1,844.81
2015 1,857.82
2016 1,867.12
2017 1,900.6
2018 1,952.67
Today 1,984.29