Value of 1979 British Pounds today

£100 in 1979

£432.27 in 2018

The inflation rate in United Kingdom between 1979 and today has been 332.27%, which translates into a total increase of £332.27. This means that 100 pounds in 1979 are equivalent to 432.27 pounds in 2018. In other words, the purchasing power of £100 in 1979 equals £432.27 today. The average annual inflation rate has been 3.73%.

Inflation timeline in United Kingdom (1979-2018)

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 (1979-2018) 325.78%
Total Inflation* 332.27%
Annual inflation avg. (1979-2018) 3.78%
Annual inflation avg.* 3.73%
CPI 1979 24.66
CPI 2018 105
CPI today* 106.6
£1 in 1979 £4.26 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 39 years between 1979 and 2018 and the average inflation rate has been 3.7275%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.04)39 = £425.78

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 1979 was 24.66 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/24.66
= £425.78

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1979 £4.32 pounds today
£5 pounds in 1979 £21.61 pounds today
£10 pounds in 1979 £43.23 pounds today
£50 pounds in 1979 £216.13 pounds today
£100 pounds in 1979 £432.27 pounds today
£500 pounds in 1979 £2,161.34 pounds today
£1,000 pounds in 1979 £4,322.68 pounds today
£5,000 pounds in 1979 £21,613.42 pounds today
£10,000 pounds in 1979 £43,226.84 pounds today
£50,000 pounds in 1979 £216,134.22 pounds today
£100,000 pounds in 1979 £432,268.44 pounds today
£500,000 pounds in 1979 £2,161,342.18 pounds today
£1,000,000 pounds in 1979 £4,322,684.37 pounds today

Value of Pound in time (by year)

Period Value
1979 100
1980 117.24
1981 134.97
1982 151.22
1983 159.4
1984 167.87
1985 175.56
1986 185.47
1987 192.43
1988 199.58
1989 208.65
1990 220.19
1991 236.69
1992 254.01
1993 260.6
1994 266.79
1995 272.15
1996 280.4
1997 286.58
1998 291.53
1999 296.07
2000 299.37
2001 301.84
2002 305.14
2003 310.09
2004 314.21
2005 319.16
2006 325.62
2007 334.95
2008 342.65
2009 353.19
2010 360.49
2011 371.85
2012 385.23
2013 394.55
2014 402.26
2015 405.1
2016 407.13
2017 414.42
2018 425.78
Today 432.27