# £1 in 1920 is worth £0.74 in 1925

£

## Value of £1 from 1920 to 1925

£1 in 1920 is equivalent in purchasing power to about £0.74 in 1925, a difference of £-0.26 over 5 years. The pound had an average deflation rate of -5.97% per year since 1920, producing a cumulative price change of -26.48%.

This means that prices in 1925 are 26.48% lower than average prices since 1920, according to the Office for National Statistics composite price index.

The 1920 inflation rate was 15.53%. The inflation rate in 1925 was 0.00%. The 1925 inflation rate is lower compared to the average inflation rate of 4.40% per year between 1925 and 2021.

 Cumulative price change -26.48% Average inflation rate -5.97% Converted amount (£1 base) £0.74 Price difference (£1 base) £-0.26 CPI in 1920 25.300 CPI in 1925 18.600 Inflation in 1920 15.53% Inflation in 1925 0.00% £1 in 1920 £0.74 in 1925

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

## Buying power of £1 in 1920

This chart shows a calculation of buying power equivalence for £1 in 1920 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.74 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

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: 1920-1925
Year Pound Value Inflation Rate
1920 £1.00 15.53%
1921 £0.91 -8.70%
1922 £0.79 -13.85%
1923 £0.74 -6.03%
1924 £0.74 -0.53%
1925 £0.74 0.00%
1926 £0.73 -0.54%
1927 £0.71 -2.70%
1928 £0.71 0.00%
1929 £0.70 -1.11%
1930 £0.68 -2.81%
1931 £0.66 -4.05%
1932 £0.64 -2.41%
1933 £0.62 -2.47%
1934 £0.62 0.00%
1935 £0.63 0.63%
1936 £0.63 0.63%
1937 £0.66 3.75%
1938 £0.66 1.20%
1939 £0.68 2.98%
1940 £0.80 16.76%
1941 £0.89 10.89%
1942 £0.95 7.14%
1943 £0.98 3.33%
1944 £1.01 2.82%
1945 £1.04 2.75%
1946 £1.07 3.05%
1947 £1.14 7.04%
1948 £1.23 7.61%
1949 £1.26 2.89%
1950 £1.30 3.13%
1951 £1.42 9.09%
1952 £1.55 9.17%
1953 £1.60 3.05%
1954 £1.63 1.98%
1955 £1.70 4.36%
1956 £1.79 5.10%
1957 £1.85 3.53%
1958 £1.91 3.20%
1959 £1.92 0.41%
1960 £1.94 1.03%
1961 £2.01 3.46%
1962 £2.09 4.33%
1963 £2.13 1.89%
1964 £2.21 3.33%
1965 £2.31 4.66%
1966 £2.40 3.94%
1967 £2.46 2.64%
1968 £2.58 4.65%
1969 £2.72 5.37%
1970 £2.89 6.40%
1971 £3.16 9.44%
1972 £3.39 7.13%
1973 £3.70 9.10%
1974 £4.29 16.04%
1975 £5.33 24.24%
1976 £6.21 16.54%
1977 £7.19 15.85%
1978 £7.79 8.30%
1979 £8.83 13.39%
1980 £10.42 17.99%
1981 £11.66 11.87%
1982 £12.66 8.61%
1983 £13.25 4.59%
1984 £13.91 4.98%
1985 £14.75 6.08%
1986 £15.25 3.40%
1987 £15.89 4.17%
1988 £16.67 4.90%
1989 £17.96 7.78%
1990 £19.66 9.46%
1991 £20.82 5.87%
1992 £21.60 3.74%
1993 £21.94 1.59%
1994 £22.47 2.41%
1995 £23.25 3.47%
1996 £23.81 2.41%
1997 £24.56 3.14%
1998 £25.40 3.43%
1999 £25.79 1.54%
2000 £26.55 2.96%
2001 £27.02 1.77%
2002 £27.47 1.67%
2003 £28.27 2.89%
2004 £29.11 2.98%
2005 £29.93 2.82%
2006 £30.89 3.20%
2007 £32.21 4.29%
2008 £33.50 3.99%
2009 £33.32 -0.53%
2010 £34.86 4.61%
2011 £36.67 5.20%
2012 £37.85 3.21%
2013 £39.00 3.04%
2014 £39.92 2.36%
2015 £40.32 0.99%
2016 £41.02 1.74%
2017 £42.49 3.58%
2018 £43.63 2.70%
2019 £44.72 2.50%
2020 £45.53 1.80%
2021 £45.85 0.70%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1920 amounts in 1925 pounds, based on the -26.48% change in prices:

Conversion: 1920 pounds in 1925
Initial value Equivalent value
£1 pound in 1920 £0.74 pounds in 1925
£5 pounds in 1920 £3.68 pounds in 1925
£10 pounds in 1920 £7.35 pounds in 1925
£50 pounds in 1920 £36.76 pounds in 1925
£100 pounds in 1920 £73.52 pounds in 1925
£500 pounds in 1920 £367.59 pounds in 1925
£1,000 pounds in 1920 £735.18 pounds in 1925
£5,000 pounds in 1920 £3,675.89 pounds in 1925
£10,000 pounds in 1920 £7,351.78 pounds in 1925
£50,000 pounds in 1920 £36,758.89 pounds in 1925
£100,000 pounds in 1920 £73,517.79 pounds in 1925
£500,000 pounds in 1920 £367,588.93 pounds in 1925
£1,000,000 pounds in 1920 £735,177.87 pounds in 1925

## How to Calculate Inflation Rate for £1, 1920 to 1925

Our calculations use the following inflation rate formula to calculate the change in value between 1920 and 1925:

CPI in 1925 CPI in 1920
×
1920 GBP value
=
1925 GBP value

Then plug in historical CPI values. The U.K. CPI was 25.3 in the year 1920 and 18.6 in 1925:

18.625.3
×
£1
=
£0.74

£1 in 1920 has the same "purchasing power" or "buying power" as £0.74 in 1925.

To get the total inflation rate for the 5 years between 1920 and 1925, we use the following formula:

CPI in 1925 - CPI in 1920CPI in 1920
×
100
=
Cumulative inflation rate (5 years)

Plugging in the values to this equation, we get:

18.6 - 25.325.3
×
100
=
-26%

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

• The League of Nations' first assembly takes place in Paris.
• The British Parliament passes the Fourth Home Rule Act, dividing Ireland into two parts and leading to a yearlong Anglo-Irish war in the southern counties.
• The Catholic Church canonizes Joan of Arc, formally making her a saint.
• The 19th Amendment to the constitution is ratified, granting U.S. woman suffrage for the first time.

## 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 1920 → 1925 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Jun. 2021, https://www.officialdata.org/uk/inflation/1920?amount=1&endYear=1925.

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.