£

Value of 1974 British Pounds today

£100 in 1974
£981.06 in 2022

The inflation rate in the United Kingdom between 1974 and today has been 881.06%, which translates into a total increase of £881.06. This means that 100 pounds in 1974 are equivalent to 981.06 pounds in 2022. In other words, the purchasing power of £100 in 1974 equals £981.06 today. The average annual inflation rate between these periods has been 4.87%.

Inflation timeline in the United Kingdom (1974 - 2022)

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. Today's values were extrapolated from the latest 12-month rolling average official data.

The following table contains relevant indicators:

Indicator Value
Cumulative inflation 1974-2021 793.43%
Cumulative inflation 1974-today 881.06%
Avg. Annual inflation 1974-2021 4.77%
CPI 1974 12.49
CPI 2021 111.6
CPI 2022-08 (latest official data) 121.8
CPI today 122.55

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 1974 and 2021, use the corresponding CPI values:

Value2021
=Value1974 ×
CPI2021/CPI1974
=£ 100 ×
111.6/12.49
£893.43

To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 122.55:

Valuetoday
=Value1974 ×
CPItoday/CPI1974
=£ 100 ×
122.55/12.49
£981.06

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 47 years between 1974 and 2021 and the average inflation rate was 4.7696%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=£100 × (1 + 0.047696)47
£893.43

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1974 £8.93 pounds in 2021
£5 pounds in 1974 £44.67 pounds in 2021
£10 pounds in 1974 £89.34 pounds in 2021
£50 pounds in 1974 £446.72 pounds in 2021
£100 pounds in 1974 £893.43 pounds in 2021
£500 pounds in 1974 £4,467.16 pounds in 2021
£1,000 pounds in 1974 £8,934.32 pounds in 2021
£5,000 pounds in 1974 £44,671.59 pounds in 2021
£10,000 pounds in 1974 £89,343.18 pounds in 2021
£50,000 pounds in 1974 £446,715.92 pounds in 2021
£100,000 pounds in 1974 £893,431.83 pounds in 2021
£500,000 pounds in 1974 £4,467,159.17 pounds in 2021
£1,000,000 pounds in 1974 £8,934,318.35 pounds in 2021
Cumulative inflation From 1974 881.06%
Avg. annual inflation From 1974 4.87%
CPI 1974 12.49
CPI today 122.55

Value of Pound over time (by year)

Period Value
1974 100
1975 124.21
1976 144.78
1977 167.71
1978 181.57
1979 205.93
1980 242.93
1981 271.79
1982 295.16
1983 308.76
1984 324.08
1985 343.75
1986 355.54
1987 370.29
1988 385.87
1989 408.29
1990 441.11
1991 473.94
1992 495.55
1993 508.36
1994 519.57
1995 533.18
1996 548.39
1997 560.4
1998 570.8
1999 581.21
2000 587.62
2001 597.22
2002 606.03
2003 614.03
2004 622.84
2005 635.65
2006 651.66
2007 666.87
2008 690.09
2009 703.7
2010 721.31
2011 749.33
2012 768.54
2013 786.16
2014 797.36
2015 800.57
2016 808.57
2017 829.39
2018 848.6
2019 863.01
2020 871.82
2021 893.43
2022-08 975.09
Today 981.06

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 |

Other currencies: