Value of 1992 British Pounds today

£100 in 1992

£170.34 in 2018

The inflation rate in United Kingdom between 1992 and today has been 70.34%, which translates into a total increase of £70.34. This means that 100 pounds in 1992 are equivalent to 170.34 pounds in 2018. In other words, the purchasing power of £100 in 1992 equals £170.34 today. The average annual inflation rate has been 1.99%.

Inflation timeline in United Kingdom (1992-2018)

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 (1992-2018) 67.62%
Total Inflation* 70.34%
Annual inflation avg. (1992-2018) 2.01%
Annual inflation avg.* 1.99%
CPI 1992 62.64
CPI 2018 105
CPI today* 106.7
£1 in 1992 £1.68 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 26 years between 1992 and 2018 and the average inflation rate has been 1.9923%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.02)26 = £167.62

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 1992 was 62.64 and the CPI today is 106.7. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/62.64
= £167.62

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1992 £1.7 pounds today
£5 pounds in 1992 £8.52 pounds today
£10 pounds in 1992 £17.03 pounds today
£50 pounds in 1992 £85.17 pounds today
£100 pounds in 1992 £170.34 pounds today
£500 pounds in 1992 £851.7 pounds today
£1,000 pounds in 1992 £1,703.39 pounds today
£5,000 pounds in 1992 £8,516.97 pounds today
£10,000 pounds in 1992 £17,033.94 pounds today
£50,000 pounds in 1992 £85,169.69 pounds today
£100,000 pounds in 1992 £170,339.38 pounds today
£500,000 pounds in 1992 £851,696.88 pounds today
£1,000,000 pounds in 1992 £1,703,393.75 pounds today

Value of Pound in time (by year)

Period Value
1992 100
1993 102.6
1994 105.03
1995 107.14
1996 110.39
1997 112.82
1998 114.77
1999 116.56
2000 117.86
2001 118.83
2002 120.13
2003 122.08
2004 123.7
2005 125.65
2006 128.19
2007 131.86
2008 134.9
2009 139.05
2010 141.92
2011 146.39
2012 151.66
2013 155.33
2014 158.37
2015 159.48
2016 160.28
2017 163.15
2018 167.62
Today 170.34