The cumulative inflation rate in the United Kingdom between 1998 and today has been 96.57%, meaning that prices are 1.97 times higher than they were in 1998. In practical terms, the purchasing power of £18 in 1998 is equivalent to £35.38 in today's pounds. The average annual inflation rate over this period has been 2.53%.
The chart below shows how the value of £18 changes over time when adjusted for inflation, based on Consumer Price Index (CPI) data. All values are equivalent in terms of purchasing power, indicating how much money would be needed each year to buy the same goods or services.
All calculations are performed in British pounds with six-decimal precision, though displayed values are rounded to two decimals for readability. Inflation figures are sourced from official government and international reports released monthly. To convert historical amounts into today's pounds, we use the most recent CPI data available and extrapolate it to estimate the CPI for today.
The following table contains relevant indicators:
| Indicator | Value |
|---|---|
| Cumulative inflation 1998-2024 | 86.4% |
| Cumulative inflation 1998-today | 96.57% |
| Avg. Annual inflation 1998-2024 | 2.42% |
| CPI 1998 | 71.3 |
| CPI 2024 | 132.9 |
| CPI 2025-10 (latest official data) | 139.5 |
| CPI today | 140.15 |
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.
When we have both the start and end years, we can use the following formula:
To obtain the values equivalent in buying power between 1998 and 2024, use the corresponding CPI values:
To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 140.15:
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:
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 £18 worth today. There are 26 years between 1998 and 2024 and the average inflation rate was 2.4239%. Therefore, we can resolve the formula like this:
| Initial Value | Equivalent value | |
|---|---|---|
| £1 pound in 1998 | → | £1.86 pounds in 2024 |
| £5 pounds in 1998 | → | £9.32 pounds in 2024 |
| £10 pounds in 1998 | → | £18.64 pounds in 2024 |
| £50 pounds in 1998 | → | £93.2 pounds in 2024 |
| £100 pounds in 1998 | → | £186.4 pounds in 2024 |
| £500 pounds in 1998 | → | £931.98 pounds in 2024 |
| £1,000 pounds in 1998 | → | £1,863.96 pounds in 2024 |
| £5,000 pounds in 1998 | → | £9,319.78 pounds in 2024 |
| £10,000 pounds in 1998 | → | £18,639.55 pounds in 2024 |
| £50,000 pounds in 1998 | → | £93,197.76 pounds in 2024 |
| £100,000 pounds in 1998 | → | £186,395.51 pounds in 2024 |
| £500,000 pounds in 1998 | → | £931,977.56 pounds in 2024 |
| £1,000,000 pounds in 1998 | → | £1,863,955.12 pounds in 2024 |
| Cumulative inflation From 1998 | 96.57% |
| Avg. annual inflation From 1998 | 2.53% |
| CPI 1998 | 71.3 |
| CPI today | 140.15 |
| Period | Value |
|---|---|
| 1998 | 18 |
| 1999 | 18.33 |
| 2000 | 18.53 |
| 2001 | 18.83 |
| 2002 | 19.11 |
| 2003 | 19.36 |
| 2004 | 19.64 |
| 2005 | 20.04 |
| 2006 | 20.55 |
| 2007 | 21.03 |
| 2008 | 21.76 |
| 2009 | 22.19 |
| 2010 | 22.75 |
| 2011 | 23.63 |
| 2012 | 24.24 |
| 2013 | 24.79 |
| 2014 | 25.14 |
| 2015 | 25.25 |
| 2016 | 25.5 |
| 2017 | 26.15 |
| 2018 | 26.76 |
| 2019 | 27.21 |
| 2020 | 27.49 |
| 2021 | 28.17 |
| 2022 | 30.42 |
| 2023 | 32.47 |
| 2024 | 33.55 |
| 2025-10 | 35.22 |
| Today | 35.38 |
All available years
Today's value of British pounds by year:
1955 | 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 | 2022 | 2023 | 2024 |
Other currencies: