# £1,000,000 in 2005 is worth £1,480,816.10 in 2019

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## Value of £1,000,000 from 2005 to 2019

According to the Office for National Statistics composite price index, prices in 2019 are 48.08% higher than average prices since 2005. The British pound experienced an average inflation rate of 2.84% per year during this period, causing the real value of a pound to decrease.

In other words, £1,000,000 in 2005 is equivalent in purchasing power to about £1,480,816.10 in 2019, a difference of £480,816.10 over 14 years.

The 2005 inflation rate was 2.82%. The inflation rate in 2019 was 1.80%. The 2019 inflation rate is higher compared to the average inflation rate of 1.50% per year between 2019 and 2020.

 Cumulative price change 48.08% Average inflation rate 2.84% Converted amount (£1,000,000 base) £1,480,816.10 Price difference (£1,000,000 base) £480,816.10 CPI in 2005 757.300 CPI in 2019 1,121.422 Inflation in 2005 2.82% Inflation in 2019 1.80%

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

## Buying power of £1,000,000 in 2005

This chart shows a calculation of buying power equivalence for £1,000,000 in 2005 (price index tracking began in 1750).

For example, if you started with £1,000,000, you would need to end with £1,480,816.10 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1,000,000 is equivalent to £1,480,816.10 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 2005 dollars, the chart below shows how £1,000,000 is worth less over 14 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:

Pound inflation: 2005-2019
Year Pound Value Inflation Rate
2005 £1,000,000.00 2.82%
2006 £1,031,955.63 3.20%
2007 £1,076,191.73 4.29%
2008 £1,119,107.36 3.99%
2009 £1,113,165.19 -0.53%
2010 £1,164,531.89 4.61%
2011 £1,225,141.95 5.20%
2012 £1,264,492.28 3.21%
2013 £1,302,918.26 3.04%
2014 £1,333,685.46 2.36%
2015 £1,346,890.27 0.99%
2016 £1,370,262.78 1.74%
2017 £1,419,384.66 3.58%
2018 £1,454,632.71 2.48%
2019 £1,480,816.10 1.80%
2020 £1,503,028.34 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 8 more rows

This conversion table shows various other 2005 amounts in 2019 pounds, based on the 48.08% change in prices:

Conversion Table: Value of a pound in 2019
Initial value Equivalent value
£1 pound in 2005 £1.48 pounds in 2019
£5 pounds in 2005 £7.40 pounds in 2019
£10 pounds in 2005 £14.81 pounds in 2019
£50 pounds in 2005 £74.04 pounds in 2019
£100 pounds in 2005 £148.08 pounds in 2019
£500 pounds in 2005 £740.41 pounds in 2019
£1,000 pounds in 2005 £1,480.82 pounds in 2019
£5,000 pounds in 2005 £7,404.08 pounds in 2019
£10,000 pounds in 2005 £14,808.16 pounds in 2019
£50,000 pounds in 2005 £74,040.80 pounds in 2019
£100,000 pounds in 2005 £148,081.61 pounds in 2019
£500,000 pounds in 2005 £740,408.05 pounds in 2019
£1,000,000 pounds in 2005 £1,480,816.10 pounds in 2019

## How to Calculate Inflation Rate for £1,000,000, 2005 to 2019

Our calculations use the following inflation rate formula to calculate the change in value between 2005 and 2019:

CPI in 2019 CPI in 2005
×
2005 GBP value
=
2019 GBP value

Then plug in historical CPI values. The U.K. CPI was 757.3 in the year 2005 and 1121.4220303 in 2019:

1121.4220303757.3
×
£1,000,000
=
£1,480,816.10

£1,000,000 in 2005 has the same "purchasing power" or "buying power" as £1,480,816.10 in 2019.

To get the total inflation rate for the 14 years between 2005 and 2019, we use the following formula:

CPI in 2019 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (14 years)

Plugging in the values to this equation, we get:

1121.4220303 - 757.3757.3
×
100
=
48%

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

• Egyptian President Hosni Mubarak asks Parliament to amend Article 76 and orders constitutional changes in order to allow multi-candidate presidential elections.
• Syria's 29-year-long military domination of Lebanon ends, after it withdraws the last of its 14,000 troops under international pressure.
• A coordinated bomb attack hits London's public transport system, during the morning rush hour, killing 52 and injuring a further 700 people.
• Angela Merkel becomes first female Chancellor of Germany.

## 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: “£1,000,000 in 2005 → 2019 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 May. 2020, https://www.officialdata.org/2005-GBP-in-2019?amount=1000000.