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Value of 1989 British Pounds today

£100 in 1989
£240.29 in 2022

The inflation rate in the United Kingdom between 1989 and today has been 140.29%, which translates into a total increase of £140.29. This means that 100 pounds in 1989 are equivalent to 240.29 pounds in 2022. In other words, the purchasing power of £100 in 1989 equals £240.29 today. The average annual inflation rate between these periods has been 2.69%.

Inflation timeline in the United Kingdom (1989 - 2022)

The following chart depicts the equivalence of £100 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 1989-2021 118.82%
Cumulative inflation 1989-today 140.29%
Avg. Annual inflation 1989-2021 2.48%
CPI 1989 51
CPI 2021 111.6
CPI 2022-08 (latest official data) 121.8
CPI today 122.55

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 1989 and 2021, use the corresponding CPI values:

Value2021
=Value1989 ×
CPI2021/CPI1989
=£ 100 ×
111.6/51
£218.82

To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 122.55:

Valuetoday
=Value1989 ×
CPItoday/CPI1989
=£ 100 ×
122.55/51
£240.29

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 £100 worth today. There are 32 years between 1989 and 2021 and the average inflation rate was 2.4774%. Therefore, we can resolve the formula like this:

Value2021
=PV × (1 + i)n
=£100 × (1 + 0.024774)32
£218.82

UK inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1989 £2.19 pounds in 2021
£5 pounds in 1989 £10.94 pounds in 2021
£10 pounds in 1989 £21.88 pounds in 2021
£50 pounds in 1989 £109.41 pounds in 2021
£100 pounds in 1989 £218.82 pounds in 2021
£500 pounds in 1989 £1,094.12 pounds in 2021
£1,000 pounds in 1989 £2,188.24 pounds in 2021
£5,000 pounds in 1989 £10,941.18 pounds in 2021
£10,000 pounds in 1989 £21,882.35 pounds in 2021
£50,000 pounds in 1989 £109,411.76 pounds in 2021
£100,000 pounds in 1989 £218,823.53 pounds in 2021
£500,000 pounds in 1989 £1,094,117.65 pounds in 2021
£1,000,000 pounds in 1989 £2,188,235.29 pounds in 2021
Cumulative inflation From 1989 140.29%
Avg. annual inflation From 1989 2.69%
CPI 1989 51
CPI today 122.55

Value of Pound over time (by year)

Period Value
1989 100
1990 108.04
1991 116.08
1992 121.37
1993 124.51
1994 127.25
1995 130.59
1996 134.31
1997 137.25
1998 139.8
1999 142.35
2000 143.92
2001 146.27
2002 148.43
2003 150.39
2004 152.55
2005 155.69
2006 159.61
2007 163.33
2008 169.02
2009 172.35
2010 176.67
2011 183.53
2012 188.24
2013 192.55
2014 195.29
2015 196.08
2016 198.04
2017 203.14
2018 207.84
2019 211.37
2020 213.53
2021 218.82
2022-08 238.82
Today 240.29

All available years

Today's value of british pounds by year:

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 |

Other currencies: