Value of 1984 British Pounds today

£100 in 1984

£257.74 in 2018

The inflation rate in United Kingdom between 1984 and today has been 157.74%, which translates into a total increase of £157.74. This means that 100 pounds in 1984 are equivalent to 257.74 pounds in 2018. In other words, the purchasing power of £100 in 1984 equals £257.74 today. The average annual inflation rate has been 2.74%.

Inflation timeline in United Kingdom (1984-2018)

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 (1984-2018) 153.63%
Total Inflation* 157.74%
Annual inflation avg. (1984-2018) 2.78%
Annual inflation avg.* 2.74%
CPI 1984 41.4
CPI 2018 105
CPI today* 106.7
£1 in 1984 £2.54 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 34 years between 1984 and 2018 and the average inflation rate has been 2.742%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)34 = £253.63

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 1984 was 41.4 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/41.4
= £253.63

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1984 £2.58 pounds today
£5 pounds in 1984 £12.89 pounds today
£10 pounds in 1984 £25.77 pounds today
£50 pounds in 1984 £128.87 pounds today
£100 pounds in 1984 £257.74 pounds today
£500 pounds in 1984 £1,288.68 pounds today
£1,000 pounds in 1984 £2,577.37 pounds today
£5,000 pounds in 1984 £12,886.83 pounds today
£10,000 pounds in 1984 £25,773.67 pounds today
£50,000 pounds in 1984 £128,868.34 pounds today
£100,000 pounds in 1984 £257,736.67 pounds today
£500,000 pounds in 1984 £1,288,683.35 pounds today
£1,000,000 pounds in 1984 £2,577,366.71 pounds today

Value of Pound in time (by year)

Period Value
1984 100
1985 104.58
1986 110.48
1987 114.63
1988 118.88
1989 124.29
1990 131.17
1991 140.99
1992 151.31
1993 155.24
1994 158.92
1995 162.12
1996 167.03
1997 170.71
1998 173.66
1999 176.36
2000 178.33
2001 179.8
2002 181.77
2003 184.71
2004 187.17
2005 190.12
2006 193.97
2007 199.52
2008 204.11
2009 210.39
2010 214.74
2011 221.5
2012 229.47
2013 235.03
2014 239.62
2015 241.31
2016 242.52
2017 246.87
2018 253.63
Today 257.74