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# £500,000 in 1991 → £1,020,410.10 in 2017

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### U.K. Inflation Rate, £500,000 in 1991 to 2017

According to the Office for National Statistics composite price index, prices in 2017 are 104.08% higher than average prices since 1991. The British pound experienced an average inflation rate of 2.78% per year during this period, meaning the real value of a pound decreased.

In other words, £500,000 in 1991 is equivalent in purchasing power to about £1,020,410.10 in 2017, a difference of £520,410.10 over 26 years.

The 1991 inflation rate was 5.87%. The inflation rate in 2017 was 3.58%. The 2017 inflation rate is higher compared to the average inflation rate of 1.93% per year between 2017 and 2020.

 Cumulative price change 104.08% Average inflation rate 2.78% Converted amount (£500,000 base) £1,020,410.10 Price difference (£500,000 base) £520,410.10 CPI in 1991 526.700 CPI in 2017 1,074.900 Inflation in 1991 5.87% Inflation in 2017 3.58%

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

### Buying power of £500,000 in 1991

This chart shows a calculation of buying power equivalence for £500,000 in 1991 (price index tracking began in 1750).

For example, if you started with £500,000, you would need to end with £1,020,410.10 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £500,000 is equivalent to £1,020,410.10 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 1991 dollars, the chart below shows how £500,000 buys less over the past 26 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
1991 £500,000.00 5.87%
1992 £518,701.35 3.74%
1993 £526,960.32 1.59%
1994 £539,681.03 2.41%
1995 £558,382.38 3.47%
1996 £571,862.54 2.41%
1997 £589,804.44 3.14%
1998 £610,024.68 3.43%
1999 £619,422.82 1.54%
2000 £637,744.45 2.96%
2001 £649,041.20 1.77%
2002 £659,863.30 1.67%
2003 £678,944.37 2.89%
2004 £699,164.61 2.98%
2005 £718,910.20 2.82%
2006 £741,883.43 3.20%
2007 £773,685.21 4.29%
2008 £804,537.69 3.99%
2009 £800,265.81 -0.53%
2010 £837,193.85 4.61%
2011 £880,767.04 5.20%
2012 £909,056.39 3.21%
2013 £936,681.22 3.04%
2014 £958,800.08 2.36%
2015 £968,293.15 0.99%
2016 £985,095.88 1.74%
2017 £1,020,410.10 3.58%
2018 £1,045,750.28 2.48%
2019 £1,064,573.79 1.80%
2020 £1,080,542.40 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 20 more rows

### How to Calculate Inflation Rate for £500,000, 1991 to 2017

This inflation calculator uses the following inflation rate formula:

CPI in 2017CPI in 1991
×
1991 GBP value
=
2017 GBP value

Then plug in historical CPI values. The U.K. CPI was 526.7 in the year 1991 and 1074.9 in 2017:

1074.9526.7
×
£500,000
=
£1,020,410.10

£500,000 in 1991 has the same "purchasing power" or "buying power" as £1,020,410.10 in 2017.

To get the total inflation rate for the 26 years between 1991 and 2017, we use the following formula:

CPI in 2017 - CPI in 1991CPI in 1991
×
100
=
Cumulative inflation rate (26 years)

Plugging in the values to this equation, we get:

1074.9 - 526.7526.7
×
100
=
104%

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

• The IRA launch a bomb attack on Downing Street, during a cabinet meeting.
• America liberates Kuwait signalling the end of the first Gulf War.
• Tim Berners-Lee releases files that describe the idea of the World Wide Web.
• Pablo Escobar, a Colombian drug lord, surrenders to the police.
• Boris Yeltsin becomes the first elected president of Russia.

### 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: “£500,000 in 1991 → 2017 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 16 Jan. 2020, https://www.officialdata.org/1991-GBP-in-2017?amount=500000.