Inflation calculator - British Pound

£600 in 1956

£12,704.68 in 2020

The inflation rate in United Kingdom between 1956 and 2020 was 2,017.45%, which translates into a total increase of £12,104.68. This means that 600 pounds in 1956 are equivalent to 12,704.68 pounds in 2020. In other words, the purchasing power of £600 in 1956 equals £12,704.68 in 2020. The average annual inflation rate between these periods was 4.89%.

Inflation timeline in United Kingdom (1956 - 2020)

The following chart depicts the equivalence of £600 throughout the years due to 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.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1956-2020) 2,017.45%
Annual inflation avg. (1956-2020) 4.89%
CPI 1956 5.12
CPI 2020 108.5
£1 in 1956 £21.17 in 2020

How to calculate the time value of money with inflation data?

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 with 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, the future value is the amount in 2020 that equals £600 in 1956 in terms of purchasing power. There are 64 years between 1956 and 2020 and the average inflation rate was 4.8856%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = £600 * (1 + 0.048856)64 = £12,704.680006 ≈ £12,704.68

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 1956 was 5.12 and in 2020 was 108.5. Therefore,

Final value = Initial value *
CPI final/CPI initial
= £600 *
108.5/5.12
= £12,704.68

United Kingdom inflation - Conversion table

Initial Value Equivalent value
£1 pound in 1956 £21.17 pounds in 2020
£5 pounds in 1956 £105.87 pounds in 2020
£10 pounds in 1956 £211.74 pounds in 2020
£50 pounds in 1956 £1,058.72 pounds in 2020
£100 pounds in 1956 £2,117.45 pounds in 2020
£500 pounds in 1956 £10,587.23 pounds in 2020
£1,000 pounds in 1956 £21,174.47 pounds in 2020
£5,000 pounds in 1956 £105,872.33 pounds in 2020
£10,000 pounds in 1956 £211,744.67 pounds in 2020
£50,000 pounds in 1956 £1,058,723.33 pounds in 2020
£100,000 pounds in 1956 £2,117,446.67 pounds in 2020
£500,000 pounds in 1956 £10,587,233.34 pounds in 2020
£1,000,000 pounds in 1956 £21,174,466.68 pounds in 2020

Value of Pound over time (by year)

Period Value
1956 600
1957 618.26
1958 646.97
1959 658.92
1960 658.92
1961 670.88
1962 700.18
1963 718.73
1964 732.08
1965 767.21
1966 801.64
1967 831.14
1968 851.52
1969 902.1
1970 944.26
1971 1,018.73
1972 1,110.77
1973 1,195.78
1974 1,322.24
1975 1,575.27
1976 1,967.4
1977 2,263.86
1978 2,538.76
1979 2,751.67
1980 3,226
1981 3,713.81
1982 4,161.19
1983 4,386.23
1984 4,619.35
1985 4,830.91
1986 5,103.61
1987 5,295
1988 5,491.7
1989 5,772.73
1990 6,112.3
1991 6,674.35
1992 7,107.6
1993 7,330.07
1994 7,494
1995 7,669.65
1996 7,903.83
1997 8,126.31
1998 8,278.53
1999 8,430.76
2000 8,559.56
2001 8,664.94
2002 8,782.04
2003 8,934.26
2004 9,051.35
2005 9,203.57
2006 9,402.63
2007 9,671.95
2008 9,894.43
2009 10,198.87
2010 10,409.64
2011 10,737.5
2012 11,123.91
2013 11,393.23
2014 11,615.71
2015 11,697.67
2016 11,756.22
2017 11,966.99
2018 12,294.85
2019 12,540.75
2020 12,704.68