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Value of 1978 British Pounds today

£100 in 1978
£531.43 in 2022

The inflation rate in the United Kingdom between 1978 and today has been 431.43%, which translates into a total increase of £431.43. This means that 100 pounds in 1978 are equivalent to 531.43 pounds in 2022. In other words, the purchasing power of £100 in 1978 equals £531.43 today. The average annual inflation rate between these periods has been 3.87%.

Inflation timeline in the United Kingdom (1978 - 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 1978-2021 392.07%
Cumulative inflation 1978-today 431.43%
Avg. Annual inflation 1978-2021 3.78%
CPI 1978 22.68
CPI 2021 111.6
CPI 2022-04 (latest official data) 119
CPI today 120.53

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 1978 and 2021, use the corresponding CPI values:

Value2021
=Value1978 ×
CPI2021/CPI1978
=£ 100 ×
111.6/22.68
£492.07

To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 120.53:

Valuetoday
=Value1978 ×
CPItoday/CPI1978
=£ 100 ×
120.53/22.68
£531.43

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 43 years between 1978 and 2021 and the average inflation rate was 3.7752%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=£100 × (1 + 0.037752)43
£492.07

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1978 £4.92 pounds in 2021
£5 pounds in 1978 £24.6 pounds in 2021
£10 pounds in 1978 £49.21 pounds in 2021
£50 pounds in 1978 £246.03 pounds in 2021
£100 pounds in 1978 £492.07 pounds in 2021
£500 pounds in 1978 £2,460.35 pounds in 2021
£1,000 pounds in 1978 £4,920.7 pounds in 2021
£5,000 pounds in 1978 £24,603.48 pounds in 2021
£10,000 pounds in 1978 £49,206.96 pounds in 2021
£50,000 pounds in 1978 £246,034.78 pounds in 2021
£100,000 pounds in 1978 £492,069.57 pounds in 2021
£500,000 pounds in 1978 £2,460,347.83 pounds in 2021
£1,000,000 pounds in 1978 £4,920,695.67 pounds in 2021
Cumulative inflation From 1978 431.43%
Avg. annual inflation From 1978 3.87%
CPI 1978 22.68
CPI today 120.53

Value of Pound over time (by year)

Period Value
1978 100
1979 113.42
1980 133.8
1981 149.69
1982 162.56
1983 170.05
1984 178.49
1985 189.33
1986 195.82
1987 203.94
1988 212.52
1989 224.87
1990 242.95
1991 261.03
1992 272.93
1993 279.99
1994 286.16
1995 293.65
1996 302.03
1997 308.65
1998 314.38
1999 320.11
2000 323.64
2001 328.93
2002 333.78
2003 338.19
2004 343.04
2005 350.09
2006 358.91
2007 367.29
2008 380.08
2009 387.57
2010 397.27
2011 412.7
2012 423.29
2013 432.99
2014 439.16
2015 440.92
2016 445.33
2017 456.8
2018 467.38
2019 475.31
2020 480.16
2021 492.07
2022-04 524.7
Today 531.43

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: