Value of 1988 British Pounds today

£100 in 1988

£228.68 in 2019

The inflation rate in United Kingdom between 1988 and today has been 128.68%, which translates into a total increase of £128.68. This means that 100 pounds in 1988 are equivalent to 228.68 pounds in 2019. In other words, the purchasing power of £100 in 1988 equals £228.68 today. The average annual inflation rate has been 2.62%.

Inflation timeline in United Kingdom (1988-2019)

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 (1988-2019) 128.36%
Total Inflation* 128.68%
Annual inflation avg. (1988-2019) 2.7%
Annual inflation avg.* 2.62%
CPI 1988 46.9
CPI 2019 107.1
CPI today* 107.25
£1 in 1988 £2.28 in 2019

* 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 31 years between 1988 and 2019 and the average inflation rate has been 2.6185%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)31 = £228.36

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 1988 was 46.9 and the CPI today is 107.25. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
107.1/46.9
= £228.36

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1988 £2.29 pounds today
£5 pounds in 1988 £11.43 pounds today
£10 pounds in 1988 £22.87 pounds today
£50 pounds in 1988 £114.34 pounds today
£100 pounds in 1988 £228.68 pounds today
£500 pounds in 1988 £1,143.38 pounds today
£1,000 pounds in 1988 £2,286.75 pounds today
£5,000 pounds in 1988 £11,433.77 pounds today
£10,000 pounds in 1988 £22,867.54 pounds today
£50,000 pounds in 1988 £114,337.69 pounds today
£100,000 pounds in 1988 £228,675.37 pounds today
£500,000 pounds in 1988 £1,143,376.87 pounds today
£1,000,000 pounds in 1988 £2,286,753.73 pounds today

Value of Pound in time (by year)

Period Value
1988 100
1989 105.12
1990 111.3
1991 121.54
1992 129.42
1993 133.48
1994 136.46
1995 139.66
1996 143.92
1997 147.97
1998 150.75
1999 153.52
2000 155.86
2001 157.78
2002 159.91
2003 162.69
2004 164.82
2005 167.59
2006 171.22
2007 176.12
2008 180.17
2009 185.71
2010 189.55
2011 195.52
2012 202.56
2013 207.46
2014 211.51
2015 213.01
2016 214.07
2017 217.91
2018 223.88
2019 228.36
Today 228.68