£1 in 1900 is worth £1.01 in 1904

Value of £1 from 1900 to 1904

According to the Office for National Statistics composite price index, prices in 1904 are 1.09% higher than average prices since 1900. The British pound experienced an average inflation rate of 0.27% per year during this period, causing the real value of a pound to decrease.

In other words, £1 in 1900 is equivalent in purchasing power to about £1.01 in 1904, a difference of £0.01 over 4 years.

The 1900 inflation rate was 4.55%. The inflation rate in 1904 was 0.00%. The 1904 inflation rate is lower compared to the average inflation rate of 4.23% per year between 1904 and 2020.


Inflation from 1900 to 1904
Cumulative price change 1.09%
Average inflation rate 0.27%
Converted amount (£1 base) £1.01
Price difference (£1 base) £0.01
CPI in 1900 9.200
CPI in 1904 9.300
Inflation in 1900 4.55%
Inflation in 1904 0.00%

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

Buying power of £1 in 1900

This chart shows a calculation of buying power equivalence for £1 in 1900 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £1.01 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £1.01 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 1900 dollars, the chart below shows how £1 is worth less over 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:

Pound inflation: 1900-1904
Year Pound Value Inflation Rate
1900 £1.00 4.55%
1901 £1.00 0.00%
1902 £1.00 0.00%
1903 £1.01 1.09%
1904 £1.01 0.00%
1905 £1.01 0.00%
1906 £1.01 0.00%
1907 £1.02 1.08%
1908 £1.02 0.00%
1909 £1.03 1.06%
1910 £1.04 1.05%
1911 £1.04 0.00%
1912 £1.08 3.13%
1913 £1.07 -1.01%
1914 £1.07 0.00%
1915 £1.20 12.24%
1916 £1.41 18.18%
1917 £1.77 25.38%
1918 £2.16 22.09%
1919 £2.38 10.05%
1920 £2.75 15.53%
1921 £2.51 -8.70%
1922 £2.16 -13.85%
1923 £2.03 -6.03%
1924 £2.02 -0.53%
1925 £2.02 0.00%
1926 £2.01 -0.54%
1927 £1.96 -2.70%
1928 £1.96 0.00%
1929 £1.93 -1.11%
1930 £1.88 -2.81%
1931 £1.80 -4.05%
1932 £1.76 -2.41%
1933 £1.72 -2.47%
1934 £1.72 0.00%
1935 £1.73 0.63%
1936 £1.74 0.63%
1937 £1.80 3.75%
1938 £1.83 1.20%
1939 £1.88 2.98%
1940 £2.20 16.76%
1941 £2.43 10.89%
1942 £2.61 7.14%
1943 £2.70 3.33%
1944 £2.77 2.82%
1945 £2.85 2.75%
1946 £2.93 3.05%
1947 £3.14 7.04%
1948 £3.38 7.61%
1949 £3.48 2.89%
1950 £3.59 3.13%
1951 £3.91 9.09%
1952 £4.27 9.17%
1953 £4.40 3.05%
1954 £4.49 1.98%
1955 £4.68 4.36%
1956 £4.92 5.10%
1957 £5.10 3.53%
1958 £5.26 3.20%
1959 £5.28 0.41%
1960 £5.34 1.03%
1961 £5.52 3.46%
1962 £5.76 4.33%
1963 £5.87 1.89%
1964 £6.07 3.33%
1965 £6.35 4.66%
1966 £6.60 3.94%
1967 £6.77 2.64%
1968 £7.09 4.65%
1969 £7.47 5.37%
1970 £7.95 6.40%
1971 £8.70 9.44%
1972 £9.32 7.13%
1973 £10.16 9.10%
1974 £11.79 16.04%
1975 £14.65 24.24%
1976 £17.08 16.54%
1977 £19.78 15.85%
1978 £21.42 8.30%
1979 £24.29 13.39%
1980 £28.66 17.99%
1981 £32.07 11.87%
1982 £34.83 8.61%
1983 £36.42 4.59%
1984 £38.24 4.98%
1985 £40.57 6.08%
1986 £41.95 3.40%
1987 £43.70 4.17%
1988 £45.84 4.90%
1989 £49.40 7.78%
1990 £54.08 9.46%
1991 £57.25 5.87%
1992 £59.39 3.74%
1993 £60.34 1.59%
1994 £61.79 2.41%
1995 £63.93 3.47%
1996 £65.48 2.41%
1997 £67.53 3.14%
1998 £69.85 3.43%
1999 £70.92 1.54%
2000 £73.02 2.96%
2001 £74.32 1.77%
2002 £75.55 1.67%
2003 £77.74 2.89%
2004 £80.05 2.98%
2005 £82.32 2.82%
2006 £84.95 3.20%
2007 £88.59 4.29%
2008 £92.12 3.99%
2009 £91.63 -0.53%
2010 £95.86 4.61%
2011 £100.85 5.20%
2012 £104.09 3.21%
2013 £107.25 3.04%
2014 £109.78 2.36%
2015 £110.87 0.99%
2016 £112.79 1.74%
2017 £116.84 3.58%
2018 £119.74 2.48%
2019 £121.89 1.80%
2020 £123.72 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1900 amounts in 1904 pounds, based on the 1.09% change in prices:

Conversion Table: Value of a pound in 1904
Initial value Equivalent value
£1 pound in 1900 £1.01 pounds in 1904
£5 pounds in 1900 £5.05 pounds in 1904
£10 pounds in 1900 £10.11 pounds in 1904
£50 pounds in 1900 £50.54 pounds in 1904
£100 pounds in 1900 £101.09 pounds in 1904
£500 pounds in 1900 £505.43 pounds in 1904
£1,000 pounds in 1900 £1,010.87 pounds in 1904
£5,000 pounds in 1900 £5,054.35 pounds in 1904
£10,000 pounds in 1900 £10,108.70 pounds in 1904
£50,000 pounds in 1900 £50,543.48 pounds in 1904
£100,000 pounds in 1900 £101,086.96 pounds in 1904
£500,000 pounds in 1900 £505,434.78 pounds in 1904
£1,000,000 pounds in 1900 £1,010,869.57 pounds in 1904

How to Calculate Inflation Rate for £1, 1900 to 1904

Our calculations use the following inflation rate formula to calculate the change in value between 1900 and 1904:

CPI in 1904 CPI in 1900
×
1900 GBP value
=
1904 GBP value

Then plug in historical CPI values. The U.K. CPI was 9.2 in the year 1900 and 9.3 in 1904:

9.39.2
×
£1
=
£1.01

£1 in 1900 has the same "purchasing power" or "buying power" as £1.01 in 1904.

To get the total inflation rate for the 4 years between 1900 and 1904, we use the following formula:

CPI in 1904 - CPI in 1900CPI in 1900
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

9.3 - 9.29.2
×
100
=
1%

News headlines from 1900

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

  • Britain establishes the protectorates of Northern Nigeria and Southern Nigeria.
  • America announces the Open Door Policy to promote trade with China.
  • The US Congress passes the Currency Act, establishing the gold standard.
  • Dutch botanist and geneticist Hugo de Vries rediscovers Mendel's law of genetics
  • Under pressure from Japan, Korea denies Russia access to Masampo Port, leading to a war between Russia and Japan.

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 1900 → 1904 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Jun. 2020, https://www.officialdata.org/uk/inflation/1900?amount=1&endYear=1904.

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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» Read more about inflation and investment.

Inflation from 1900 to 1904
Cumulative price change 1.09%
Average inflation rate 0.27%
Converted amount (£1 base) £1.01
Price difference (£1 base) £0.01
CPI in 1900 9.200
CPI in 1904 9.300
Inflation in 1900 4.55%
Inflation in 1904 0.00%