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# £1,200 in 1937 → £79,633.25 in 2018

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### U.K. Inflation Rate, £1,200 in 1937 to 2018

According to the Office for National Statistics composite price index, prices in 2018 are 6,536.10% higher than average prices since 1937. The British pound experienced an average inflation rate of 5.32% per year during this period, meaning the real value of a pound decreased.

In other words, £1,200 in 1937 is equivalent in purchasing power to about £79,633.25 in 2018, a difference of £78,433.25 over 81 years.

The 1937 inflation rate was 3.75%. The inflation rate in 2018 was 2.48%. The 2018 inflation rate is higher compared to the average inflation rate of 1.65% per year between 2018 and 2020.

 Cumulative price change 6,536.10% Average inflation rate 5.32% Converted amount (£1,200 base) £79,633.25 Price difference (£1,200 base) £78,433.25 CPI in 1937 16.600 CPI in 2018 1,101.593 Inflation in 1937 3.75% Inflation in 2018 2.48%

GBP Inflation since 1750
Annual Rate, the Office for National Statistics CPI

### Buying power of £1,200 in 1937

This chart shows a calculation of buying power equivalence for £1,200 in 1937 (price index tracking began in 1750).

For example, if you started with £1,200, you would need to end with £79,633.25 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1,200 is equivalent to £79,633.25 over time, that means that the "real value" of a single U.K. pound decreases over time. In other words, a pound will pay for fewer items at the store.

This effect explains how inflation erodes the value of a pound over time. By calculating the value in 1937 dollars, the chart below shows how £1,200 buys less over the past 81 years.

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
1937 £1,200.00 3.75%
1938 £1,214.46 1.20%
1939 £1,250.60 2.98%
1940 £1,460.24 16.76%
1941 £1,619.28 10.89%
1942 £1,734.94 7.14%
1943 £1,792.77 3.33%
1944 £1,843.37 2.82%
1945 £1,893.98 2.75%
1946 £1,951.81 3.05%
1947 £2,089.16 7.04%
1948 £2,248.19 7.61%
1949 £2,313.25 2.89%
1950 £2,385.54 3.13%
1951 £2,602.41 9.09%
1952 £2,840.96 9.17%
1953 £2,927.71 3.05%
1954 £2,985.54 1.98%
1955 £3,115.66 4.36%
1956 £3,274.70 5.10%
1957 £3,390.36 3.53%
1958 £3,498.80 3.20%
1959 £3,513.25 0.41%
1960 £3,549.40 1.03%
1961 £3,672.29 3.46%
1962 £3,831.33 4.33%
1963 £3,903.61 1.89%
1964 £4,033.73 3.33%
1965 £4,221.69 4.66%
1966 £4,387.95 3.94%
1967 £4,503.61 2.64%
1968 £4,713.25 4.65%
1969 £4,966.27 5.37%
1970 £5,284.34 6.40%
1971 £5,783.13 9.44%
1972 £6,195.18 7.13%
1973 £6,759.04 9.10%
1974 £7,843.37 16.04%
1975 £9,744.58 24.24%
1976 £11,356.63 16.54%
1977 £13,156.63 15.85%
1978 £14,248.19 8.30%
1979 £16,156.63 13.39%
1980 £19,062.65 17.99%
1981 £21,325.30 11.87%
1982 £23,161.45 8.61%
1983 £24,224.10 4.59%
1984 £25,431.33 4.98%
1985 £26,978.31 6.08%
1986 £27,896.39 3.40%
1987 £29,060.24 4.17%
1988 £30,484.34 4.90%
1989 £32,855.42 7.78%
1990 £35,963.86 9.46%
1991 £38,074.70 5.87%
1992 £39,498.80 3.74%
1993 £40,127.71 1.59%
1994 £41,096.39 2.41%
1995 £42,520.48 3.47%
1996 £43,546.99 2.41%
1997 £44,913.25 3.14%
1998 £46,453.01 3.43%
1999 £47,168.67 1.54%
2000 £48,563.86 2.96%
2001 £49,424.10 1.77%
2002 £50,248.19 1.67%
2003 £51,701.20 2.89%
2004 £53,240.96 2.98%
2005 £54,744.58 2.82%
2006 £56,493.98 3.20%
2007 £58,915.66 4.29%
2008 £61,265.06 3.99%
2009 £60,939.76 -0.53%
2010 £63,751.81 4.61%
2011 £67,069.88 5.20%
2012 £69,224.10 3.21%
2013 £71,327.71 3.04%
2014 £73,012.05 2.36%
2015 £73,734.94 0.99%
2016 £75,014.46 1.74%
2017 £77,703.61 3.58%
2018 £79,633.25 2.48%
2019 £81,066.65 1.80%
2020 £82,282.65 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 75 more rows

### How to Calculate Inflation Rate for £1,200, 1937 to 2018

This inflation calculator uses the following inflation rate formula:

CPI in 2018CPI in 1937
×
1937 GBP value
=
2018 GBP value

Then plug in historical CPI values. The U.K. CPI was 16.6 in the year 1937 and 1101.59335 in 2018:

1101.5933516.6
×
£1,200
=
£79,633.25

£1,200 in 1937 has the same "purchasing power" or "buying power" as £79,633.25 in 2018.

To get the total inflation rate for the 81 years between 1937 and 2018, we use the following formula:

CPI in 2018 - CPI in 1937CPI in 1937
×
100
=
Cumulative inflation rate (81 years)

Plugging in the values to this equation, we get:

1101.59335 - 16.616.6
×
100
=
6,536%

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

• The Second Sino-Japanese War starts when Japanese and Chinese troops clash at the Marco Polo Bridge.
• 193,000 Russians are executed by order of the Politburo's Operative Order 00447.
• Adolf Hitler and his military leaders hold a secret meeting where he reveals his plan to go to war.

### 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: “£1,200 in 1937 → 2018 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 17 Jan. 2020, https://www.officialdata.org/1937-GBP-in-2018?amount=1200.