# £1 in 1920 → £0.74 in 1925

## UK Inflation Calculator

£

### U.K. Inflation Rate, £1 from 1920 to 1925

According to the Office for National Statistics composite price index, prices in 1925 are 26.48% lower than average prices since 1920. The British pound experienced an average deflation rate of -5.97% per year during this period, meaning the real value of a pound increased.

In other words, £1 in 1920 is equivalent in purchasing power to about £0.74 in 1925, a difference of £-0.26 over 5 years.

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 4.43% per year between 1925 and 2020.

 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%

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:

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 £43.54 2.48%
2019 £44.32 1.80%
2020 £44.99 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, 1920 to 1925

This inflation calculator uses the following inflation rate formula:

CPI in 1925CPI 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, 19 Feb. 2020, https://www.officialdata.org/uk/inflation/1920?amount=1&endYear=1925.

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

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 -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%