# £1 in 2010 → £0.92 in 2007

## UK Inflation Calculator

£

### U.K. Inflation Rate, £1 from 2010 to 2007

According to the Office for National Statistics composite price index, prices in 2007 are 7.59% lower than average prices since 2010. The British pound experienced an average inflation rate of 2.66% per year during this period, meaning the real value of a pound decreased.

In other words, £1 in 2010 is equivalent in purchasing power to about £0.92 in 2007, a difference of £-0.08 over 3 years.

The 2007 inflation rate was 4.29%. The inflation rate in 2010 was 4.61%. The 2010 inflation rate is higher compared to the average inflation rate of 2.58% per year between 2010 and 2020.

 Cumulative price change -7.59% Average inflation rate 2.66% Converted amount (£1 base) £0.92 Price difference (£1 base) £-0.08 CPI in 2010 881.900 CPI in 2007 815.000 Inflation in 2007 4.29% Inflation in 2010 4.61%

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

### Buying power of £1 in 2007

This chart shows a calculation of buying power equivalence for £1 in 2007 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.92 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.92 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 2007 dollars, the chart below shows how £1 buys less over the past 3 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
2007 £1.00 4.29%
2008 £1.04 3.99%
2009 £1.03 -0.53%
2010 £1.08 4.61%
2011 £1.14 5.20%
2012 £1.17 3.21%
2013 £1.21 3.04%
2014 £1.24 2.36%
2015 £1.25 0.99%
2016 £1.27 1.74%
2017 £1.32 3.58%
2018 £1.35 2.48%
2019 £1.38 1.80%
2020 £1.40 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, 2007 to 2010

This inflation calculator uses the following inflation rate formula:

CPI in 2007CPI in 2010
×
2010 GBP value
=
2007 GBP value

Then plug in historical CPI values. The U.K. CPI was 881.9 in the year 2010 and 815 in 2007:

815881.9
×
£1
=
£0.92

£1 in 2010 has the same "purchasing power" or "buying power" as £0.92 in 2007.

To get the total inflation rate for the 3 years between 2007 and 2010, we use the following formula:

CPI in 2007 - CPI in 2010CPI in 2010
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

815 - 881.9881.9
×
100
=
-8%

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

• The Copiapo mining accident in Chile ends, after 33 miners resurface having spent 69 days trapped in the ruins.
• Big Haiti earthquake kills 230,000 people and leaves most of Port-au-Prince, its capital, in ruins.
• An explosion on the Deepwater Horizon (a drilling rig), kills 11 people and spills a massive amount of oil into the Gulf of Mexico.
• The US army abolishes the "Don't Ask Don't Tell" policy, which had banned homosexuals from openly serving in the US military.

### 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 2010 → 2007 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Feb. 2020, https://www.officialdata.org/2010-GBP-in-2007?amount=1.