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# £1 in 2000 → £0.90 in 1996

### U.K. Inflation Rate, £1 in 2000 to 1996

According to the Office for National Statistics composite price index, prices in 1996 are 10.33% lower than average prices since 2000. The British pound experienced an average inflation rate of 2.76% per year during this period, meaning the real value of a pound decreased.

In other words, £1 in 2000 is equivalent in purchasing power to about £0.90 in 1996, a difference of £-0.10 over 4 years.

The 1996 inflation rate was 2.41%. The inflation rate in 2000 was 2.96%. The 2000 inflation rate is higher compared to the average inflation rate of 2.67% per year between 2000 and 2020.

 Cumulative price change -10.33% Average inflation rate 2.76% Converted amount (£1 base) £0.90 Price difference (£1 base) £-0.10 CPI in 2000 671.800 CPI in 1996 602.400 Inflation in 1996 2.41% Inflation in 2000 2.96%

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

### Buying power of £1 in 1996

This chart shows a calculation of buying power equivalence for £1 in 1996 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.90 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.90 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 1996 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
1996 £1.00 2.41%
1997 £1.03 3.14%
1998 £1.07 3.43%
1999 £1.08 1.54%
2000 £1.12 2.96%
2001 £1.13 1.77%
2002 £1.15 1.67%
2003 £1.19 2.89%
2004 £1.22 2.98%
2005 £1.26 2.82%
2006 £1.30 3.20%
2007 £1.35 4.29%
2008 £1.41 3.99%
2009 £1.40 -0.53%
2010 £1.46 4.61%
2011 £1.54 5.20%
2012 £1.59 3.21%
2013 £1.64 3.04%
2014 £1.68 2.36%
2015 £1.69 0.99%
2016 £1.72 1.74%
2017 £1.78 3.58%
2018 £1.83 2.48%
2019 £1.86 1.80%
2020 £1.89 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, 1996 to 2000

This inflation calculator uses the following inflation rate formula:

CPI in 1996CPI in 2000
×
2000 GBP value
=
1996 GBP value

Then plug in historical CPI values. The U.K. CPI was 671.8 in the year 2000 and 602.4 in 1996:

602.4671.8
×
£1
=
£0.90

£1 in 2000 has the same "purchasing power" or "buying power" as £0.90 in 1996.

To get the total inflation rate for the 4 years between 1996 and 2000, we use the following formula:

CPI in 1996 - CPI in 2000CPI in 2000
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

602.4 - 671.8671.8
×
100
=
-10%

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

• Steve Ballmer becomes CEO of Microsoft after Bill Gates steps down.
• Dot-com bubble bursts after NASDAQ Composite stock market index peaks.
• George Bush becomes President of the U.S. in a disputed election that is eventually resolved by the Supreme Court.
• Gisborne, New Zealand becomes the first city to enter the new millennium.

### 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 2000 → 1996 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2020, https://www.officialdata.org/2000-GBP-in-1996?amount=1.