£1 in 1920 → £0.79 in 1918

UK Inflation Calculator

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£1 in 1920 → £0.79 in 1918

UK Inflation Rate, £1 in 1920 to 1918

According to the Office for National Statistics composite price index, prices in 1918 are 21.34% lower than average prices throughout 1920. The pound experienced an average inflation rate of 12.75% per year during this period, meaning the real value of a dollar decreased.

In other words, £1 in 1920 is equivalent in purchasing power to about £0.79 in 1918, a difference of £-0.21 over 2 years.

The 1918 inflation rate was 22.09%. The inflation rate in 1920 was 15.53%. The 1920 inflation rate is higher compared to the average inflation rate of 3.90% per year between 1920 and 2019.


Inflation from 1920 to 1918
Cumulative price change -21.34%
Average inflation rate 12.75%
Converted amount (£1 base) £0.79
Price difference (£1 base) £-0.21
CPI in 1920 25.300
CPI in 1918 19.900
Inflation in 1918 22.09%
Inflation in 1920 15.53%

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


Buying power of £1 in 1918

This chart shows calculation of buying power equivalence, often referred to as "the value of a pound" over time for £1 in 1918 (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 Pound Value Inflation Rate
1918 £1.00 22.09%
1919 £1.10 10.05%
1920 £1.27 15.53%
1921 £1.16 -8.70%
1922 £1.00 -13.85%
1923 £0.94 -6.03%
1924 £0.93 -0.53%
1925 £0.93 0.00%
1926 £0.93 -0.54%
1927 £0.90 -2.70%
1928 £0.90 0.00%
1929 £0.89 -1.11%
1930 £0.87 -2.81%
1931 £0.83 -4.05%
1932 £0.81 -2.41%
1933 £0.79 -2.47%
1934 £0.79 0.00%
1935 £0.80 0.63%
1936 £0.80 0.63%
1937 £0.83 3.75%
1938 £0.84 1.20%
1939 £0.87 2.98%
1940 £1.02 16.76%
1941 £1.13 10.89%
1942 £1.21 7.14%
1943 £1.25 3.33%
1944 £1.28 2.82%
1945 £1.32 2.75%
1946 £1.36 3.05%
1947 £1.45 7.04%
1948 £1.56 7.61%
1949 £1.61 2.89%
1950 £1.66 3.13%
1951 £1.81 9.09%
1952 £1.97 9.17%
1953 £2.04 3.05%
1954 £2.08 1.98%
1955 £2.17 4.36%
1956 £2.28 5.10%
1957 £2.36 3.53%
1958 £2.43 3.20%
1959 £2.44 0.41%
1960 £2.47 1.03%
1961 £2.55 3.46%
1962 £2.66 4.33%
1963 £2.71 1.89%
1964 £2.80 3.33%
1965 £2.93 4.66%
1966 £3.05 3.94%
1967 £3.13 2.64%
1968 £3.28 4.65%
1969 £3.45 5.37%
1970 £3.67 6.40%
1971 £4.02 9.44%
1972 £4.31 7.13%
1973 £4.70 9.10%
1974 £5.45 16.04%
1975 £6.77 24.24%
1976 £7.89 16.54%
1977 £9.15 15.85%
1978 £9.90 8.30%
1979 £11.23 13.39%
1980 £13.25 17.99%
1981 £14.82 11.87%
1982 £16.10 8.61%
1983 £16.84 4.59%
1984 £17.68 4.98%
1985 £18.75 6.08%
1986 £19.39 3.40%
1987 £20.20 4.17%
1988 £21.19 4.90%
1989 £22.84 7.78%
1990 £25.00 9.46%
1991 £26.47 5.87%
1992 £27.46 3.74%
1993 £27.89 1.59%
1994 £28.57 2.41%
1995 £29.56 3.47%
1996 £30.27 2.41%
1997 £31.22 3.14%
1998 £32.29 3.43%
1999 £32.79 1.54%
2000 £33.76 2.96%
2001 £34.36 1.77%
2002 £34.93 1.67%
2003 £35.94 2.89%
2004 £37.01 2.98%
2005 £38.06 2.82%
2006 £39.27 3.20%
2007 £40.95 4.29%
2008 £42.59 3.99%
2009 £42.36 -0.53%
2010 £44.32 4.61%
2011 £46.62 5.20%
2012 £48.12 3.21%
2013 £49.58 3.04%
2014 £50.75 2.36%
2015 £51.26 0.99%
2016 £52.15 1.74%
2017 £54.02 3.58%
2018 £55.36 2.48%
2019 £56.35 1.80%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

How to Calculate Inflation Rate for £1, 1918 to 1920

This inflation calculator uses the following inflation rate formula:

CPI in 1918CPI in 1920
×
1920 GBP value
=
1918 GBP value

Then plug in historical CPI values. The UK CPI was 25.3 in the year 1920 and 19.9 in 1918:

19.925.3
×
£1
=
£0.79

£1 in 1920 has the same "purchasing power" or "buying power" as £0.79 in 1918.

To get the total inflation rate for the 2 years between 1918 and 1920, we use the following formula:

CPI in 1918 - CPI in 1920CPI in 1920
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

19.9 - 25.325.3
×
100
=
-21%

News headlines from 1918

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

  • The League of Nations' first assembly takes place in Paris.
  • The British Parliament passes the Fourth Home Rule Act, dividing Ireland into two parts and leading to a yearlong Anglo-Irish war in the southern counties.
  • The Catholic Church canonizes Joan of Arc, formally making her a saint.
  • The 19th Amendment to the constitution is ratified, granting U.S. woman suffrage for the first time.

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: “£1 in 1920 → 1918 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 24 Aug. 2019, https://www.officialdata.org/1920-GBP-in-1918?amount=1.

Special thanks to QuickChart for providing downloadable chart images.

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


» Read more about inflation and investment.

Inflation from 1920 to 1918
Cumulative price change -21.34%
Average inflation rate 12.75%
Converted amount (£1 base) £0.79
Price difference (£1 base) £-0.21
CPI in 1920 25.300
CPI in 1918 19.900
Inflation in 1918 22.09%
Inflation in 1920 15.53%
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