Value of 1989 British Pounds today

£100 in 1989

£217.52 in 2019

The inflation rate in United Kingdom between 1989 and today has been 117.52%, which translates into a total increase of £117.52. This means that 100 pounds in 1989 are equivalent to 217.52 pounds in 2019. In other words, the purchasing power of £100 in 1989 equals £217.52 today. The average annual inflation rate has been 2.54%.

Inflation timeline in United Kingdom (1989-2019)

The following chart depicts the equivalence of £100 throughout the years due to 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 obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1989-2019) 117.24%
Total Inflation* 117.52%
Annual inflation avg. (1989-2019) 2.62%
Annual inflation avg.* 2.54%
CPI 1989 49.3
CPI 2019 107.1
CPI today* 107.24
£1 in 1989 £2.17 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 30 years between 1989 and 2019 and the average inflation rate has been 2.5385%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.03)30 = £217.24

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 1989 was 49.3 and the CPI today is 107.24. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
107.1/49.3
= £217.24

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1989 £2.18 pounds today
£5 pounds in 1989 £10.88 pounds today
£10 pounds in 1989 £21.75 pounds today
£50 pounds in 1989 £108.76 pounds today
£100 pounds in 1989 £217.52 pounds today
£500 pounds in 1989 £1,087.59 pounds today
£1,000 pounds in 1989 £2,175.19 pounds today
£5,000 pounds in 1989 £10,875.95 pounds today
£10,000 pounds in 1989 £21,751.9 pounds today
£50,000 pounds in 1989 £108,759.48 pounds today
£100,000 pounds in 1989 £217,518.97 pounds today
£500,000 pounds in 1989 £1,087,594.83 pounds today
£1,000,000 pounds in 1989 £2,175,189.66 pounds today

Value of Pound in time (by year)

Period Value
1989 100
1990 105.88
1991 115.62
1992 123.12
1993 126.98
1994 129.82
1995 132.86
1996 136.92
1997 140.77
1998 143.41
1999 146.04
2000 148.28
2001 150.1
2002 152.13
2003 154.77
2004 156.8
2005 159.43
2006 162.88
2007 167.55
2008 171.4
2009 176.67
2010 180.32
2011 186
2012 192.7
2013 197.36
2014 201.22
2015 202.64
2016 203.65
2017 207.3
2018 212.98
2019 217.24
Today 217.52