£3.40 in 1973 → £38.68 in 2017

UK Inflation Calculator


UK Inflation Rate, 1973-2017 (£3.40)

According to the Office for National Statistics composite price index, the pound experienced an average inflation rate of 5.68% per year. Prices in 2017 are 1037.6% higher than prices in 1973.

In other words, £3.40 in the year 1973 is equivalent in purchasing power to £38.68 in 2017, a difference of £35.28 over 44 years.

The inflation rate in 2017 was 2.53%.

Inflation from 1973 to 2017
Cumulative price change 1037.56%
Average inflation rate 5.68%
Price difference (£3.40 base) £35.28
CPI in 1973 93.5
CPI in 2017 1063.61928

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

How to calculate the inflation rate for £3.40, 1973 to 2017

Start with the inflation rate formula:

CPI in 2017 / CPI in 1973 * 1973 GBP value = 2017 GBP value

Then plug in historical CPI values. The UK CPI was 93.5 in the year 1973 and 1063.61928 in 2017:

1063.61928 / 93.5 * £3.40 = £38.68

£3.40 in 1973 has the same "purchasing power" as £38.68 in 2017.

News headlines from 1973

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

  • President Richard Nixon announces the end of the Vietnam War.
  • The longest war in American history finishes after William Rogers and Nguyen Duy Trinh of US and North Vietnam's army sign a cease-fire.
  • The IRA attacks London for the first time following the arrests of 10 of its members.
  • The Senate Watergate Committee begins its hearings.

Inflation Data Source

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: “£3.40 in 1973 → 2017 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 18 Feb. 2018, http://www.in2013dollars.com/1973-GBP-in-2017?amount=3.40.

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