Value of 1989 British Pounds today

£100 in 1989

£207.18 in 2018

The inflation rate in United Kingdom between 1989 and today has been 107.18%, which translates into a total increase of £107.18. This means that 100 pounds in 1989 are equivalent to 207.18 pounds in 2018. In other words, the purchasing power of £100 in 1989 equals £207.18 today. The average annual inflation rate has been 2.46%.

Inflation timeline in United Kingdom (1989-2018)

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 (1989-2018) 104.06%
Total Inflation* 107.18%
Annual inflation avg. (1989-2018) 2.49%
Annual inflation avg.* 2.46%
CPI 1989 51.45
CPI 2018 105
CPI today* 106.6
£1 in 1989 £2.04 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 29 years between 1989 and 2018 and the average inflation rate has been 2.4577%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.02)29 = £204.06

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 51.45 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/51.45
= £204.06

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1989 £2.07 pounds today
£5 pounds in 1989 £10.36 pounds today
£10 pounds in 1989 £20.72 pounds today
£50 pounds in 1989 £103.59 pounds today
£100 pounds in 1989 £207.18 pounds today
£500 pounds in 1989 £1,035.88 pounds today
£1,000 pounds in 1989 £2,071.75 pounds today
£5,000 pounds in 1989 £10,358.76 pounds today
£10,000 pounds in 1989 £20,717.51 pounds today
£50,000 pounds in 1989 £103,587.56 pounds today
£100,000 pounds in 1989 £207,175.12 pounds today
£500,000 pounds in 1989 £1,035,875.59 pounds today
£1,000,000 pounds in 1989 £2,071,751.19 pounds today

Value of Pound in time (by year)

Period Value
1989 100
1990 105.53
1991 113.44
1992 121.74
1993 124.9
1994 127.87
1995 130.43
1996 134.39
1997 137.35
1998 139.72
1999 141.9
2000 143.48
2001 144.66
2002 146.25
2003 148.62
2004 150.59
2005 152.96
2006 156.06
2007 160.53
2008 164.22
2009 169.28
2010 172.77
2011 178.22
2012 184.63
2013 189.1
2014 192.79
2015 194.15
2016 195.12
2017 198.62
2018 204.06
Today 207.18