# £1 in 1935 is worth £1.27 in 1940

£

## Value of £1 from 1935 to 1940

£1 in 1935 is equivalent in purchasing power to about £1.27 in 1940, an increase of £0.27 over 5 years. The pound had an average inflation rate of 4.90% per year between 1935 and 1940, producing a cumulative price increase of 27.04%.

This means that prices in 1940 are 1.27 times higher than average prices since 1935, according to the Office for National Statistics composite price index.

The 1935 inflation rate was 0.63%. The inflation rate in 1940 was 16.76%. The 1940 inflation rate is higher compared to the average inflation rate of 5.13% per year between 1940 and 2021.

 Cumulative price change 27.04% Average inflation rate 4.90% Converted amount (£1 base) £1.27 Price difference (£1 base) £0.27 CPI in 1935 15.900 CPI in 1940 20.200 Inflation in 1935 0.63% Inflation in 1940 16.76% £1 in 1935 £1.27 in 1940

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

## Buying power of £1 in 1935

This chart shows a calculation of buying power equivalence for £1 in 1935 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £1.27 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £1.27 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 1935 dollars, the chart below shows how £1 is worth less over 5 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: 1935-1940
Year Pound Value Inflation Rate
1935 £1.00 0.63%
1936 £1.01 0.63%
1937 £1.04 3.75%
1938 £1.06 1.20%
1939 £1.09 2.98%
1940 £1.27 16.76%
1941 £1.41 10.89%
1942 £1.51 7.14%
1943 £1.56 3.33%
1944 £1.60 2.82%
1945 £1.65 2.75%
1946 £1.70 3.05%
1947 £1.82 7.04%
1948 £1.96 7.61%
1949 £2.01 2.89%
1950 £2.08 3.13%
1951 £2.26 9.09%
1952 £2.47 9.17%
1953 £2.55 3.05%
1954 £2.60 1.98%
1955 £2.71 4.36%
1956 £2.85 5.10%
1957 £2.95 3.53%
1958 £3.04 3.20%
1959 £3.06 0.41%
1960 £3.09 1.03%
1961 £3.19 3.46%
1962 £3.33 4.33%
1963 £3.40 1.89%
1964 £3.51 3.33%
1965 £3.67 4.66%
1966 £3.82 3.94%
1967 £3.92 2.64%
1968 £4.10 4.65%
1969 £4.32 5.37%
1970 £4.60 6.40%
1971 £5.03 9.44%
1972 £5.39 7.13%
1973 £5.88 9.10%
1974 £6.82 16.04%
1975 £8.48 24.24%
1976 £9.88 16.54%
1977 £11.45 15.85%
1978 £12.40 8.30%
1979 £14.06 13.39%
1980 £16.58 17.99%
1981 £18.55 11.87%
1982 £20.15 8.61%
1983 £21.08 4.59%
1984 £22.13 4.98%
1985 £23.47 6.08%
1986 £24.27 3.40%
1987 £25.28 4.17%
1988 £26.52 4.90%
1989 £28.58 7.78%
1990 £31.29 9.46%
1991 £33.13 5.87%
1992 £34.36 3.74%
1993 £34.91 1.59%
1994 £35.75 2.41%
1995 £36.99 3.47%
1996 £37.89 2.41%
1997 £39.08 3.14%
1998 £40.42 3.43%
1999 £41.04 1.54%
2000 £42.25 2.96%
2001 £43.00 1.77%
2002 £43.72 1.67%
2003 £44.98 2.89%
2004 £46.32 2.98%
2005 £47.63 2.82%
2006 £49.15 3.20%
2007 £51.26 4.29%
2008 £53.30 3.99%
2009 £53.02 -0.53%
2010 £55.47 4.61%
2011 £58.35 5.20%
2012 £60.23 3.21%
2013 £62.06 3.04%
2014 £63.52 2.36%
2015 £64.15 0.99%
2016 £65.26 1.74%
2017 £67.60 3.58%
2018 £69.43 2.70%
2019 £71.16 2.50%
2020 £72.45 1.80%
2021 £72.95 0.70%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1935 amounts in 1940 pounds, based on the 27.04% change in prices:

Conversion: 1935 pounds in 1940
Initial value Equivalent value
£1 pound in 1935 £1.27 pounds in 1940
£5 pounds in 1935 £6.35 pounds in 1940
£10 pounds in 1935 £12.70 pounds in 1940
£50 pounds in 1935 £63.52 pounds in 1940
£100 pounds in 1935 £127.04 pounds in 1940
£500 pounds in 1935 £635.22 pounds in 1940
£1,000 pounds in 1935 £1,270.44 pounds in 1940
£5,000 pounds in 1935 £6,352.20 pounds in 1940
£10,000 pounds in 1935 £12,704.40 pounds in 1940
£50,000 pounds in 1935 £63,522.01 pounds in 1940
£100,000 pounds in 1935 £127,044.03 pounds in 1940
£500,000 pounds in 1935 £635,220.13 pounds in 1940
£1,000,000 pounds in 1935 £1,270,440.25 pounds in 1940

## How to Calculate Inflation Rate for £1, 1935 to 1940

Our calculations use the following inflation rate formula to calculate the change in value between 1935 and 1940:

CPI in 1940 CPI in 1935
×
1935 GBP value
=
1940 GBP value

Then plug in historical CPI values. The U.K. CPI was 15.9 in the year 1935 and 20.2 in 1940:

20.215.9
×
£1
=
£1.27

£1 in 1935 has the same "purchasing power" or "buying power" as £1.27 in 1940.

To get the total inflation rate for the 5 years between 1935 and 1940, we use the following formula:

CPI in 1940 - CPI in 1935CPI in 1935
×
100
=
Cumulative inflation rate (5 years)

Plugging in the values to this equation, we get:

20.2 - 15.915.9
×
100
=
27%

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

• Hitler violates the Treaty of Versailles by ordering German rearmament.
• In an event known as "Black Sunday", a severe sandstorm strikes the US Midwest, coining the term "Dust Bowl".
• Communist forces end their Long March bringing Mao Zedong to prominence.
• First trans-pacific airmail flight by a flying boat the "China Clipper" that took off from Alameda, California

## 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 1935 → 1940 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Jun. 2021, https://www.officialdata.org/uk/inflation/1935?amount=1&endYear=1940.

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.