According to the Office for National Statistics composite price index, prices in 2018 are 71.43% higher than average prices throughout 1998. The pound experienced an average inflation rate of 2.73% per year during this period, meaning the real value of a dollar decreased.
In other words, £84,500 in 1998 is equivalent in purchasing power to about £144,856.27 in 2018, a difference of £60,356.27 over 20 years.
The 1998 inflation rate was 3.43%. The inflation rate in 2018 was 2.48%. The 2018 inflation rate is higher compared to the average inflation rate of 1.80% per year between 2018 and 2019.
|Cumulative price change||71.43%|
|Average inflation rate||2.73%|
|Converted amount (£84,500 base)||£144,856.27|
|Price difference (£84,500 base)||£60,356.27|
|CPI in 1998||642.600|
|CPI in 2018||1,101.593|
|Inflation in 1998||3.43%|
|Inflation in 2018||2.48%|
This chart shows calculation of buying power equivalence, often referred to as "the value of a pound" over time for £84,500 in 1998 (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|
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The UK CPI was 642.6 in the year 1998 and 1101.59335 in 2018:
£84,500 in 1998 has the same "purchasing power" or "buying power" as £144,856.27 in 2018.
To get the total inflation rate for the 20 years between 1998 and 2018, we use the following formula:
Plugging in the values to this equation, we get:
Politics and news often influence economic performance. Here's what was happening at the time:
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: “£84,500 in 1998 → 2018 | UK Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Apr. 2019, https://www.officialdata.org/1998-GBP-in-2018?amount=84500.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.