£1,496,874 in 1970 → £22,557,406.90 in 2018

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U.K. Inflation Rate, £1,496,874 from 1970 to 2018

According to the Office for National Statistics composite price index, prices in 2018 are 1,406.97% higher than average prices since 1970. The British pound experienced an average inflation rate of 5.81% per year during this period, meaning the real value of a pound decreased.

In other words, £1,496,874 in 1970 is equivalent in purchasing power to about £22,557,406.90 in 2018, a difference of £21,060,532.90 over 48 years.

The 1970 inflation rate was 6.40%. 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.


Inflation from 1970 to 2018
Cumulative price change 1,406.97%
Average inflation rate 5.81%
Converted amount (£1,496,874 base) £22,557,406.90
Price difference (£1,496,874 base) £21,060,532.90
CPI in 1970 73.100
CPI in 2018 1,101.593
Inflation in 1970 6.40%
Inflation in 2018 2.48%

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

Buying power of £1,496,874 in 1970

This chart shows a calculation of buying power equivalence for £1,496,874 in 1970 (price index tracking began in 1750).

For example, if you started with £1,496,874, you would need to end with £22,557,406.90 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1,496,874 is equivalent to £22,557,406.90 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 1970 dollars, the chart below shows how £1,496,874 buys less over the past 48 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
1970 £1,496,874.00 6.40%
1971 £1,638,165.80 9.44%
1972 £1,754,885.11 7.13%
1973 £1,914,606.28 9.10%
1974 £2,221,762.37 16.04%
1975 £2,760,309.37 24.24%
1976 £3,216,948.09 16.54%
1977 £3,726,827.20 15.85%
1978 £4,036,030.99 8.30%
1979 £4,576,625.70 13.39%
1980 £5,399,804.02 17.99%
1981 £6,040,736.39 11.87%
1982 £6,560,854.03 8.61%
1983 £6,861,867.00 4.59%
1984 £7,203,834.11 4.98%
1985 £7,642,043.46 6.08%
1986 £7,902,102.28 3.40%
1987 £8,231,783.15 4.17%
1988 £8,635,181.47 4.90%
1989 £9,306,829.45 7.78%
1990 £10,187,343.57 9.46%
1991 £10,785,274.09 5.87%
1992 £11,188,672.42 3.74%
1993 £11,366,822.95 1.59%
1994 £11,641,215.72 2.41%
1995 £12,044,614.05 3.47%
1996 £12,335,388.48 2.41%
1997 £12,722,405.15 3.14%
1998 £13,158,566.79 3.43%
1999 £13,361,289.81 1.54%
2000 £13,756,497.31 2.96%
2001 £14,000,174.47 1.77%
2002 £14,233,613.10 1.67%
2003 £14,645,202.25 2.89%
2004 £15,081,363.90 2.98%
2005 £15,507,287.01 2.82%
2006 £16,002,832.16 3.20%
2007 £16,688,814.09 4.29%
2008 £17,354,318.95 3.99%
2009 £17,262,172.12 -0.53%
2010 £18,058,730.24 4.61%
2011 £18,998,627.87 5.20%
2012 £19,608,844.63 3.21%
2013 £20,204,727.44 3.04%
2014 £20,681,843.23 2.36%
2015 £20,886,613.95 0.99%
2016 £21,249,058.14 1.74%
2017 £22,010,805.23 3.58%
2018 £22,557,406.90 2.48%
2019 £22,963,440.22 1.80%
2020 £23,307,891.82 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 42 more rows

How to Calculate Inflation Rate for £1,496,874, 1970 to 2018

This inflation calculator uses the following inflation rate formula:

CPI in 2018CPI in 1970
×
1970 GBP value
=
2018 GBP value

Then plug in historical CPI values. The U.K. CPI was 73.1 in the year 1970 and 1101.59335 in 2018:

1101.5933573.1
×
£1,496,874
=
£22,557,406.90

£1,496,874 in 1970 has the same "purchasing power" or "buying power" as £22,557,406.90 in 2018.

To get the total inflation rate for the 48 years between 1970 and 2018, we use the following formula:

CPI in 2018 - CPI in 1970CPI in 1970
×
100
=
Cumulative inflation rate (48 years)

Plugging in the values to this equation, we get:

1101.59335 - 73.173.1
×
100
=
1,407%

News headlines from 1970

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

  • January 1st, 1970 established as Epoch time for UNIX systems.
  • Rhodesia declares independence and sets up a republican government.
  • Aswan Dam opens in Egypt to prevent flooding of the Nile River.
  • A Palestinian terrorist organization hijacks three aircrafts in an incident that is later known as Black September.

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: “£1,496,874 in 1970 → 2018 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Feb. 2020, https://www.officialdata.org/1970-GBP-in-2018?amount=1496874.

Special thanks to QuickChart for providing downloadable chart images.

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


Ian Webster

About the author

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.

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Inflation from 1970 to 2018
Cumulative price change 1,406.97%
Average inflation rate 5.81%
Converted amount (£1,496,874 base) £22,557,406.90
Price difference (£1,496,874 base) £21,060,532.90
CPI in 1970 73.100
CPI in 2018 1,101.593
Inflation in 1970 6.40%
Inflation in 2018 2.48%