Value of 2002 British Pounds today

£100 in 2002

£141.66 in 2018

The inflation rate in United Kingdom between 2002 and today has been 41.66%, which translates into a total increase of £41.66. This means that 100 pounds in 2002 are equivalent to 141.66 pounds in 2018. In other words, the purchasing power of £100 in 2002 equals £141.66 today. The average annual inflation rate has been 2.07%.

Inflation timeline in United Kingdom (2002-2018)

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 (2002-2018) 39.54%
Total Inflation* 41.66%
Annual inflation avg. (2002-2018) 2.1%
Annual inflation avg.* 2.07%
CPI 2002 75.25
CPI 2018 105
CPI today* 106.6
£1 in 2002 £1.4 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 16 years between 2002 and 2018 and the average inflation rate has been 2.0698%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £100 * (1 + 0.02)16 = £139.54

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 2002 was 75.25 and the CPI today is 106.6. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £100 *
105/75.25
= £139.54

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 2002 £1.42 pounds today
£5 pounds in 2002 £7.08 pounds today
£10 pounds in 2002 £14.17 pounds today
£50 pounds in 2002 £70.83 pounds today
£100 pounds in 2002 £141.66 pounds today
£500 pounds in 2002 £708.31 pounds today
£1,000 pounds in 2002 £1,416.63 pounds today
£5,000 pounds in 2002 £7,083.15 pounds today
£10,000 pounds in 2002 £14,166.3 pounds today
£50,000 pounds in 2002 £70,831.49 pounds today
£100,000 pounds in 2002 £141,662.97 pounds today
£500,000 pounds in 2002 £708,314.86 pounds today
£1,000,000 pounds in 2002 £1,416,629.72 pounds today

Value of Pound in time (by year)

Period Value
2002 100
2003 101.62
2004 102.97
2005 104.59
2006 106.71
2007 109.77
2008 112.29
2009 115.75
2010 118.14
2011 121.86
2012 126.25
2013 129.3
2014 131.83
2015 132.76
2016 133.42
2017 135.82
2018 139.54
Today 141.66