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# £1 in 1946 → £1.22 in 1950

### U.K. Inflation Rate, £1 in 1946 to 1950

According to the Office for National Statistics composite price index, prices in 1950 are 22.22% higher than average prices since 1946. The British pound experienced an average inflation rate of 5.14% per year during this period, meaning the real value of a pound decreased.

In other words, £1 in 1946 is equivalent in purchasing power to about £1.22 in 1950, a difference of £0.22 over 4 years.

The 1946 inflation rate was 3.05%. The inflation rate in 1950 was 3.13%. The 1950 inflation rate is lower compared to the average inflation rate of 5.19% per year between 1950 and 2020.

 Cumulative price change 22.22% Average inflation rate 5.14% Converted amount (£1 base) £1.22 Price difference (£1 base) £0.22 CPI in 1946 27.000 CPI in 1950 33.000 Inflation in 1946 3.05% Inflation in 1950 3.13%

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

### Buying power of £1 in 1946

This chart shows a calculation of buying power equivalence for £1 in 1946 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £1.22 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £1.22 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 1946 dollars, the chart below shows how £1 buys less over the past 4 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
1946 £1.00 3.05%
1947 £1.07 7.04%
1948 £1.15 7.61%
1949 £1.19 2.89%
1950 £1.22 3.13%
1951 £1.33 9.09%
1952 £1.46 9.17%
1953 £1.50 3.05%
1954 £1.53 1.98%
1955 £1.60 4.36%
1956 £1.68 5.10%
1957 £1.74 3.53%
1958 £1.79 3.20%
1959 £1.80 0.41%
1960 £1.82 1.03%
1961 £1.88 3.46%
1962 £1.96 4.33%
1963 £2.00 1.89%
1964 £2.07 3.33%
1965 £2.16 4.66%
1966 £2.25 3.94%
1967 £2.31 2.64%
1968 £2.41 4.65%
1969 £2.54 5.37%
1970 £2.71 6.40%
1971 £2.96 9.44%
1972 £3.17 7.13%
1973 £3.46 9.10%
1974 £4.02 16.04%
1975 £4.99 24.24%
1976 £5.82 16.54%
1977 £6.74 15.85%
1978 £7.30 8.30%
1979 £8.28 13.39%
1980 £9.77 17.99%
1981 £10.93 11.87%
1982 £11.87 8.61%
1983 £12.41 4.59%
1984 £13.03 4.98%
1985 £13.82 6.08%
1986 £14.29 3.40%
1987 £14.89 4.17%
1988 £15.62 4.90%
1989 £16.83 7.78%
1990 £18.43 9.46%
1991 £19.51 5.87%
1992 £20.24 3.74%
1993 £20.56 1.59%
1994 £21.06 2.41%
1995 £21.79 3.47%
1996 £22.31 2.41%
1997 £23.01 3.14%
1998 £23.80 3.43%
1999 £24.17 1.54%
2000 £24.88 2.96%
2001 £25.32 1.77%
2002 £25.74 1.67%
2003 £26.49 2.89%
2004 £27.28 2.98%
2005 £28.05 2.82%
2006 £28.94 3.20%
2007 £30.19 4.29%
2008 £31.39 3.99%
2009 £31.22 -0.53%
2010 £32.66 4.61%
2011 £34.36 5.20%
2012 £35.47 3.21%
2013 £36.54 3.04%
2014 £37.41 2.36%
2015 £37.78 0.99%
2016 £38.43 1.74%
2017 £39.81 3.58%
2018 £40.80 2.48%
2019 £41.53 1.80%
2020 £42.16 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

### How to Calculate Inflation Rate for £1, 1946 to 1950

This inflation calculator uses the following inflation rate formula:

CPI in 1950CPI in 1946
×
1946 GBP value
=
1950 GBP value

Then plug in historical CPI values. The U.K. CPI was 27 in the year 1946 and 33 in 1950:

3327
×
£1
=
£1.22

£1 in 1946 has the same "purchasing power" or "buying power" as £1.22 in 1950.

To get the total inflation rate for the 4 years between 1946 and 1950, we use the following formula:

CPI in 1950 - CPI in 1946CPI in 1946
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

33 - 2727
×
100
=
22%

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

• The United Nations General Assembly meets for the first time in London.
• President Harry Truman sets up the Central Intelligence Agency or CIA.
• The US State Department releases the Acheson-Lilenthal Report outlining a plan for how the US can limit nuclear power internationally, marking the beginning of Cold War.
• Twenty-two Nazi leaders found guilty of war crimes during the Nuremburg trials.

### 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 1946 → 1950 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Jan. 2020, https://www.officialdata.org/1946-GBP-in-1950?amount=1.

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

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

 Cumulative price change 22.22% Average inflation rate 5.14% Converted amount (£1 base) £1.22 Price difference (£1 base) £0.22 CPI in 1946 27.000 CPI in 1950 33.000 Inflation in 1946 3.05% Inflation in 1950 3.13%