# £1 in 1905 is worth £1.01 in 1908

£

## Value of £1 from 1905 to 1908

According to the Office for National Statistics composite price index, prices in 1908 are 1.08% higher than average prices since 1905. The British pound experienced an average inflation rate of 0.36% per year during this period, causing the real value of a pound to decrease.

In other words, £1 in 1905 is equivalent in purchasing power to about £1.01 in 1908, a difference of £0.01 over 3 years.

The 1905 inflation rate was 0.00%. The inflation rate in 1908 was 0.00%. The 1908 inflation rate is lower compared to the average inflation rate of 4.38% per year between 1908 and 2020.

 Cumulative price change 1.08% Average inflation rate 0.36% Converted amount (£1 base) £1.01 Price difference (£1 base) £0.01 CPI in 1905 9.300 CPI in 1908 9.400 Inflation in 1905 0.00% Inflation in 1908 0.00%

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

## Buying power of £1 in 1905

This chart shows a calculation of buying power equivalence for £1 in 1905 (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 1905 dollars, the chart below shows how £1 is worth less over 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:

Pound inflation: 1905-1908
Year Pound Value Inflation Rate
1905 £1.00 -
1906 £1.00 0.00%
1907 £1.01 1.08%
1908 £1.01 0.00%
1909 £1.02 1.06%
1910 £1.03 1.05%
1911 £1.03 0.00%
1912 £1.06 3.13%
1913 £1.05 -1.01%
1914 £1.05 0.00%
1915 £1.18 12.24%
1916 £1.40 18.18%
1917 £1.75 25.38%
1918 £2.14 22.09%
1919 £2.35 10.05%
1920 £2.72 15.53%
1921 £2.48 -8.70%
1922 £2.14 -13.85%
1923 £2.01 -6.03%
1924 £2.00 -0.53%
1925 £2.00 0.00%
1926 £1.99 -0.54%
1927 £1.94 -2.70%
1928 £1.94 0.00%
1929 £1.91 -1.11%
1930 £1.86 -2.81%
1931 £1.78 -4.05%
1932 £1.74 -2.41%
1933 £1.70 -2.47%
1934 £1.70 0.00%
1935 £1.71 0.63%
1936 £1.72 0.63%
1937 £1.78 3.75%
1938 £1.81 1.20%
1939 £1.86 2.98%
1940 £2.17 16.76%
1941 £2.41 10.89%
1942 £2.58 7.14%
1943 £2.67 3.33%
1944 £2.74 2.82%
1945 £2.82 2.75%
1946 £2.90 3.05%
1947 £3.11 7.04%
1948 £3.34 7.61%
1949 £3.44 2.89%
1950 £3.55 3.13%
1951 £3.87 9.09%
1952 £4.23 9.17%
1953 £4.35 3.05%
1954 £4.44 1.98%
1955 £4.63 4.36%
1956 £4.87 5.10%
1957 £5.04 3.53%
1958 £5.20 3.20%
1959 £5.23 0.41%
1960 £5.28 1.03%
1961 £5.46 3.46%
1962 £5.70 4.33%
1963 £5.81 1.89%
1964 £6.00 3.33%
1965 £6.28 4.66%
1966 £6.53 3.94%
1967 £6.70 2.64%
1968 £7.01 4.65%
1969 £7.39 5.37%
1970 £7.86 6.40%
1971 £8.60 9.44%
1972 £9.22 7.13%
1973 £10.05 9.10%
1974 £11.67 16.04%
1975 £14.49 24.24%
1976 £16.89 16.54%
1977 £19.57 15.85%
1978 £21.19 8.30%
1979 £24.03 13.39%
1980 £28.35 17.99%
1981 £31.72 11.87%
1982 £34.45 8.61%
1983 £36.03 4.59%
1984 £37.83 4.98%
1985 £40.13 6.08%
1986 £41.49 3.40%
1987 £43.23 4.17%
1988 £45.34 4.90%
1989 £48.87 7.78%
1990 £53.49 9.46%
1991 £56.63 5.87%
1992 £58.75 3.74%
1993 £59.69 1.59%
1994 £61.13 2.41%
1995 £63.25 3.47%
1996 £64.77 2.41%
1997 £66.81 3.14%
1998 £69.10 3.43%
1999 £70.16 1.54%
2000 £72.24 2.96%
2001 £73.52 1.77%
2002 £74.74 1.67%
2003 £76.90 2.89%
2004 £79.19 2.98%
2005 £81.43 2.82%
2006 £84.03 3.20%
2007 £87.63 4.29%
2008 £91.13 3.99%
2009 £90.65 -0.53%
2010 £94.83 4.61%
2011 £99.76 5.20%
2012 £102.97 3.21%
2013 £106.10 3.04%
2014 £108.60 2.36%
2015 £109.68 0.99%
2016 £111.58 1.74%
2017 £115.58 3.58%
2018 £118.45 2.48%
2019 £120.58 1.80%
2020 £122.39 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1905 amounts in 1908 pounds, based on the 1.08% change in prices:

Conversion Table: Value of a pound in 1908
Initial value Equivalent value
£1 pound in 1905 £1.01 pounds in 1908
£5 pounds in 1905 £5.05 pounds in 1908
£10 pounds in 1905 £10.11 pounds in 1908
£50 pounds in 1905 £50.54 pounds in 1908
£100 pounds in 1905 £101.08 pounds in 1908
£500 pounds in 1905 £505.38 pounds in 1908
£1,000 pounds in 1905 £1,010.75 pounds in 1908
£5,000 pounds in 1905 £5,053.76 pounds in 1908
£10,000 pounds in 1905 £10,107.53 pounds in 1908
£50,000 pounds in 1905 £50,537.63 pounds in 1908
£100,000 pounds in 1905 £101,075.27 pounds in 1908
£500,000 pounds in 1905 £505,376.34 pounds in 1908
£1,000,000 pounds in 1905 £1,010,752.69 pounds in 1908

## How to Calculate Inflation Rate for £1, 1905 to 1908

Our calculations use the following inflation rate formula to calculate the change in value between 1905 and 1908:

CPI in 1908 CPI in 1905
×
1905 GBP value
=
1908 GBP value

Then plug in historical CPI values. The U.K. CPI was 9.3 in the year 1905 and 9.4 in 1908:

9.49.3
×
£1
=
£1.01

£1 in 1905 has the same "purchasing power" or "buying power" as £1.01 in 1908.

To get the total inflation rate for the 3 years between 1905 and 1908, we use the following formula:

CPI in 1908 - CPI in 1905CPI in 1905
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

9.4 - 9.39.3
×
100
=
1%

## News headlines from 1905

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

• The Industrial Workers of the World is formed. It is an American anarcho-syndicalist union.
• Bloody Sunday in Russia: troops fire and kill protesters, mostly workers, marching to the Winter Palace in order to hand a petition to the Tsar.
• Potemkin's arrival at Odessa leads to sailors joining civilians in the '1905 Revolution’.

## 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 1905 → 1908 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Oct. 2020, https://www.officialdata.org/uk/inflation/1905?amount=1&endYear=1908.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

#### 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.

 Cumulative price change 1.08% Average inflation rate 0.36% Converted amount (£1 base) £1.01 Price difference (£1 base) £0.01 CPI in 1905 9.300 CPI in 1908 9.400 Inflation in 1905 0.00% Inflation in 1908 0.00%