£500 in 1916 → £42,241.23 in 2018

UK Inflation Calculator

£

UK Inflation Rate, £500 in 1916 to 2018

According to the Office for National Statistics composite price index, prices in 2018 are 8,348.25% higher than prices in 1916. The pound experienced an average inflation rate of 4.45% per year during this period.

In other words, £500 in 1916 is equivalent in purchasing power to £42,241.23 in 2018, a difference of £41,741.23 over 102 years.

The 1916 inflation rate was 18.18%. The current inflation rate (2017 to 2018) is now 2.20%1. If this number holds, £500 today will be equivalent to £511.00 next year.


Inflation from 1916 to 2018
Cumulative price change 8,348.25%
Average inflation rate 4.45%
Converted amount (£500 base) £42,241.23
Price difference (£500 base) £41,741.23
CPI in 1916 13.000
CPI in 2018 1,098.272
Inflation in 1916 18.18%
Inflation in 2018 2.20%


UK inflation chart from 1988 to 2017. Based on the UK Consumer Price Index.


Buying power of £500 since 1916

This chart shows calculations of buying power equivalence over time for £500 in 1916 (price index tracking began in 1750).

According to the Office for National Statistics, each of these GBP amounts below is equal in terms of what it could buy at the time:

Year GBP Value Inflation Rate
1916 £500.00 18.18%
1917 £626.92 25.38%
1918 £765.38 22.09%
1919 £842.31 10.05%
1920 £973.08 15.53%
1921 £888.46 -8.70%
1922 £765.38 -13.85%
1923 £719.23 -6.03%
1924 £715.38 -0.53%
1925 £715.38 0.00%
1926 £711.54 -0.54%
1927 £692.31 -2.70%
1928 £692.31 0.00%
1929 £684.62 -1.11%
1930 £665.38 -2.81%
1931 £638.46 -4.05%
1932 £623.08 -2.41%
1933 £607.69 -2.47%
1934 £607.69 0.00%
1935 £611.54 0.63%
1936 £615.38 0.63%
1937 £638.46 3.75%
1938 £646.15 1.20%
1939 £665.38 2.98%
1940 £776.92 16.76%
1941 £861.54 10.89%
1942 £923.08 7.14%
1943 £953.85 3.33%
1944 £980.77 2.82%
1945 £1,007.69 2.75%
1946 £1,038.46 3.05%
1947 £1,111.54 7.04%
1948 £1,196.15 7.61%
1949 £1,230.77 2.89%
1950 £1,269.23 3.13%
1951 £1,384.62 9.09%
1952 £1,511.54 9.17%
1953 £1,557.69 3.05%
1954 £1,588.46 1.98%
1955 £1,657.69 4.36%
1956 £1,742.31 5.10%
1957 £1,803.85 3.53%
1958 £1,861.54 3.20%
1959 £1,869.23 0.41%
1960 £1,888.46 1.03%
1961 £1,953.85 3.46%
1962 £2,038.46 4.33%
1963 £2,076.92 1.89%
1964 £2,146.15 3.33%
1965 £2,246.15 4.66%
1966 £2,334.62 3.94%
1967 £2,396.15 2.64%
1968 £2,507.69 4.65%
1969 £2,642.31 5.37%
1970 £2,811.54 6.40%
1971 £3,076.92 9.44%
1972 £3,296.15 7.13%
1973 £3,596.15 9.10%
1974 £4,173.08 16.04%
1975 £5,184.62 24.24%
1976 £6,042.31 16.54%
1977 £7,000.00 15.85%
1978 £7,580.77 8.30%
1979 £8,596.15 13.39%
1980 £10,142.31 17.99%
1981 £11,346.15 11.87%
1982 £12,323.08 8.61%
1983 £12,888.46 4.59%
1984 £13,530.77 4.98%
1985 £14,353.85 6.08%
1986 £14,842.31 3.40%
1987 £15,461.54 4.17%
1988 £16,219.23 4.90%
1989 £17,480.77 7.78%
1990 £19,134.62 9.46%
1991 £20,257.69 5.87%
1992 £21,015.38 3.74%
1993 £21,350.00 1.59%
1994 £21,865.38 2.41%
1995 £22,623.08 3.47%
1996 £23,169.23 2.41%
1997 £23,896.15 3.14%
1998 £24,715.38 3.43%
1999 £25,096.15 1.54%
2000 £25,838.46 2.96%
2001 £26,296.15 1.77%
2002 £26,734.62 1.67%
2003 £27,507.69 2.89%
2004 £28,326.92 2.98%
2005 £29,126.92 2.82%
2006 £30,057.69 3.20%
2007 £31,346.15 4.29%
2008 £32,596.15 3.99%
2009 £32,423.08 -0.53%
2010 £33,919.23 4.61%
2011 £35,684.62 5.20%
2012 £36,830.77 3.21%
2013 £37,950.00 3.04%
2014 £38,846.15 2.36%
2015 £39,230.77 0.99%
2016 £39,897.69 1.70%
2017 £41,331.92 3.59%
2018 £42,241.23 2.20%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

How to Calculate Inflation Rate for £500 since 1916

This inflation calculator uses the following inflation rate formula:

CPI in 2018CPI in 1916
×
1916 GBP value
=
2018 GBP value

Then plug in historical CPI values. The UK CPI was 13 in the year 1916 and 1098.27186 in 2018:

1098.2718613
×
£500
=
£42,241.23

£500 in 1916 has the same "purchasing power" or "buying power" as £42,241.23 in 2018.

To get the total inflation rate for the 102 years between 1916 and 2018, we use the following formula:

CPI in 2018 - CPI in 1916CPI in 1916
×
100
=
Cumulative inflation rate (102 years)

Plugging in the values to this equation, we get:

1098.27186 - 1313
×
100
=
8,348%

News headlines from 1916

Politics and news often influence economic performance. Here's what was happening at the time:

  • Ottoman forces successfully defend access to Constantinople, leading to ANZAC forces withdrawal from the Gallipoli Peninsula.
  • An estimated 1 million men are killed during the Battle of Verdun.
  • The Easter Rising ends after Irish republicans abandon the post office in Dublin and surrenders.
  • Tanks known as 'Little Willies' are used for the first time at the Battle of the Somme.
  • The first aerial combat in France is won by Manfred von Richthofen, known as The Red Baron, German Luftstreitkrafte flying ace.

Data Source & Citation

Raw data for these calculations comes from the composite price index published by the UK Office for National Statistics (ONS). A composite index is created by combining price data from several different published sources, both official and unofficial. The Consumer Price Index, normally used to compute inflation, has only been tracked since 1988. All inflation calculations after 1988 use the Office for National Statistics' Consumer Price Index, except for 2017, which is based on The Bank of England's forecast.

You may use the following MLA citation for this page: “£500 in 1916 → 2018 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 13 Nov. 2018, https://www.officialdata.org/1916-GBP-in-2018?amount=500.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


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