Value of 1983 British Pounds today

£100 in 1983

£271.44 in 2018

The inflation rate in United Kingdom between 1983 and today has been 171.44%, which translates into a total increase of £171.44. This means that 100 pounds in 1983 are equivalent to 271.44 pounds in 2018. In other words, the purchasing power of £100 in 1983 equals £271.44 today. The average annual inflation rate has been 2.81%.

Inflation timeline in United Kingdom (1983-2018)

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 (1983-2018) 167.11%
Total Inflation* 171.44%
Annual inflation avg. (1983-2018) 2.85%
Annual inflation avg.* 2.81%
CPI 1983 39.31
CPI 2018 105
CPI today* 106.7
£1 in 1983 £2.67 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 35 years between 1983 and 2018 and the average inflation rate has been 2.8126%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)35 = £267.11

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 1983 was 39.31 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/39.31
= £267.11

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1983 £2.71 pounds today
£5 pounds in 1983 £13.57 pounds today
£10 pounds in 1983 £27.14 pounds today
£50 pounds in 1983 £135.72 pounds today
£100 pounds in 1983 £271.44 pounds today
£500 pounds in 1983 £1,357.18 pounds today
£1,000 pounds in 1983 £2,714.35 pounds today
£5,000 pounds in 1983 £13,571.76 pounds today
£10,000 pounds in 1983 £27,143.51 pounds today
£50,000 pounds in 1983 £135,717.57 pounds today
£100,000 pounds in 1983 £271,435.14 pounds today
£500,000 pounds in 1983 £1,357,175.71 pounds today
£1,000,000 pounds in 1983 £2,714,351.43 pounds today

Value of Pound in time (by year)

Period Value
1983 100
1984 105.31
1985 110.14
1986 116.36
1987 120.72
1988 125.2
1989 130.89
1990 138.14
1991 148.48
1992 159.35
1993 163.49
1994 167.37
1995 170.73
1996 175.91
1997 179.79
1998 182.89
1999 185.74
2000 187.8
2001 189.36
2002 191.43
2003 194.53
2004 197.12
2005 200.22
2006 204.27
2007 210.13
2008 214.96
2009 221.57
2010 226.15
2011 233.28
2012 241.67
2013 247.52
2014 252.35
2015 254.14
2016 255.41
2017 259.99
2018 267.11
Today 271.44