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Value of 1965 British Pounds today

£1,200 in 1965
£22,295.48 in 2022

The inflation rate in the United Kingdom between 1965 and today has been 1,757.96%, which translates into a total increase of £21,095.48. This means that 1,200 pounds in 1965 are equivalent to 22,295.48 pounds in 2022. In other words, the purchasing power of £1,200 in 1965 equals £22,295.48 today. The average annual inflation rate between these periods has been 5.26%.

Inflation timeline in the United Kingdom (1965 - 2022)

The following chart depicts the equivalence of £1,200 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. Today's values were extrapolated from the latest 12-month rolling average official data.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation 1965-2021 1,558.96%
Cumulative inflation 1965-today 1,757.96%
Avg. Annual inflation 1965-2021 5.14%
CPI 1965 6.73
CPI 2021 111.6
CPI 2022-10 (latest official data) 124.3
CPI today 124.99

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 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 1965 and 2021, use the corresponding CPI values:

Value2021
=Value1965 ×
CPI2021/CPI1965
=£ 1,200 ×
111.6/6.73
£19,907.54

To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 124.99:

Valuetoday
=Value1965 ×
CPItoday/CPI1965
=£ 1,200 ×
124.99/6.73
£22,295.48

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 £1,200 worth today. There are 56 years between 1965 and 2021 and the average inflation rate was 5.1436%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=£1,200 × (1 + 0.051436)56
£19,907.54

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1965 £16.59 pounds in 2021
£5 pounds in 1965 £82.95 pounds in 2021
£10 pounds in 1965 £165.9 pounds in 2021
£50 pounds in 1965 £829.48 pounds in 2021
£100 pounds in 1965 £1,658.96 pounds in 2021
£500 pounds in 1965 £8,294.81 pounds in 2021
£1,000 pounds in 1965 £16,589.62 pounds in 2021
£5,000 pounds in 1965 £82,948.1 pounds in 2021
£10,000 pounds in 1965 £165,896.2 pounds in 2021
£50,000 pounds in 1965 £829,481 pounds in 2021
£100,000 pounds in 1965 £1,658,962.01 pounds in 2021
£500,000 pounds in 1965 £8,294,810.04 pounds in 2021
£1,000,000 pounds in 1965 £16,589,620.07 pounds in 2021
Cumulative inflation From 1965 1,757.96%
Avg. annual inflation From 1965 5.26%
CPI 1965 6.73
CPI today 124.99

Value of Pound over time (by year)

Period Value
1965 1,200
1966 1,246.92
1967 1,277.87
1968 1,337.89
1969 1,410.76
1970 1,500.58
1971 1,642.31
1972 1,758.44
1973 1,920.14
1974 2,228.21
1975 2,767.6
1976 3,225.9
1977 3,736.89
1978 4,045.68
1979 4,588.66
1980 5,413.05
1981 6,055.94
1982 6,576.69
1983 6,879.82
1984 7,221.11
1985 7,659.53
1986 7,922.07
1987 8,250.75
1988 8,598.06
1989 9,097.53
1990 9,828.9
1991 10,560.27
1992 11,041.91
1993 11,327.32
1994 11,577.06
1995 11,880.31
1996 12,219.24
1997 12,486.81
1998 12,718.71
1999 12,950.61
2000 13,093.31
2001 13,307.37
2002 13,503.59
2003 13,681.98
2004 13,878.2
2005 14,163.61
2006 14,520.38
2007 14,859.3
2008 15,376.62
2009 15,679.87
2010 16,072.31
2011 16,696.65
2012 17,124.77
2013 17,517.21
2014 17,766.95
2015 17,838.3
2016 18,016.68
2017 18,480.48
2018 18,908.6
2019 19,229.69
2020 19,425.91
2021 19,907.54
2022-10 22,173.01
Today 22,295.48

All available years

Today's value of british pounds by year:

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 |

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