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Value of 1983 British Pounds today

£40 in 1983
£138.86 in 2024

The inflation rate in the United Kingdom between 1983 and today has been 247.15%, which translates into a total increase of £98.86. This means that 40 pounds in 1983 are equivalent to 138.86 pounds in 2024. In other words, the purchasing power of £40 in 1983 equals £138.86 today. The average annual inflation rate between these periods has been 3.08%.

Inflation timeline in the United Kingdom (1983 - 2024)

The following chart depicts the equivalence of £40 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 1983-2023 233.44%
Cumulative inflation 1983-today 247.15%
Avg. Annual inflation 1983-2023 3.06%
CPI 1983 38.57
CPI 2023 128.6
CPI 2024-08 (latest official data) 133.4
CPI today 133.89

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 1983 and 2023, use the corresponding CPI values:

Value2023
=Value1983 ×
CPI2023/CPI1983
=£ 40 ×
128.6/38.57
£133.38

To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 133.89:

Valuetoday
=Value1983 ×
CPItoday/CPI1983
=£ 40 ×
133.89/38.57
£138.86

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 £40 worth today. There are 40 years between 1983 and 2023 and the average inflation rate was 3.0565%. Therefore, we can resolve the formula like this:

Value2023
=PV × (1 + i)n
=£40 × (1 + 0.030565)40
£133.38

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1983 £3.33 pounds in 2023
£5 pounds in 1983 £16.67 pounds in 2023
£10 pounds in 1983 £33.34 pounds in 2023
£50 pounds in 1983 £166.72 pounds in 2023
£100 pounds in 1983 £333.44 pounds in 2023
£500 pounds in 1983 £1,667.2 pounds in 2023
£1,000 pounds in 1983 £3,334.4 pounds in 2023
£5,000 pounds in 1983 £16,671.98 pounds in 2023
£10,000 pounds in 1983 £33,343.96 pounds in 2023
£50,000 pounds in 1983 £166,719.78 pounds in 2023
£100,000 pounds in 1983 £333,439.55 pounds in 2023
£500,000 pounds in 1983 £1,667,197.77 pounds in 2023
£1,000,000 pounds in 1983 £3,334,395.53 pounds in 2023
Cumulative inflation From 1983 247.15%
Avg. annual inflation From 1983 3.08%
CPI 1983 38.57
CPI today 133.89

Value of Pound over time (by year)

Period Value
1983 40
1984 41.98
1985 44.53
1986 46.06
1987 47.97
1988 49.99
1989 52.89
1990 57.15
1991 61.4
1992 64.2
1993 65.86
1994 67.31
1995 69.07
1996 71.04
1997 72.6
1998 73.95
1999 75.3
2000 76.13
2001 77.37
2002 78.51
2003 79.55
2004 80.69
2005 82.35
2006 84.42
2007 86.39
2008 89.4
2009 91.16
2010 93.45
2011 97.08
2012 99.57
2013 101.85
2014 103.3
2015 103.71
2016 104.75
2017 107.45
2018 109.94
2019 111.8
2020 112.94
2021 115.74
2022 124.98
2023 133.38
2024-08 138.35
Today 138.86

All available years

Today's value of british pounds by year:

1955 | 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 | 2022 | 2023 |

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