# £1 in 1965 → £0.87 in 1961

## UK Inflation Calculator

£

### U.K. Inflation Rate, £1 from 1965 to 1961

According to the Office for National Statistics composite price index, prices in 1961 are 13.01% lower than average prices since 1965. The British pound experienced an average inflation rate of 3.55% per year during this period, meaning the real value of a pound decreased.

In other words, £1 in 1965 is equivalent in purchasing power to about £0.87 in 1961, a difference of £-0.13 over 4 years.

The 1961 inflation rate was 3.46%. The inflation rate in 1965 was 4.66%. The 1965 inflation rate is lower compared to the average inflation rate of 5.55% per year between 1965 and 2020.

 Cumulative price change -13.01% Average inflation rate 3.55% Converted amount (£1 base) £0.87 Price difference (£1 base) £-0.13 CPI in 1965 58.400 CPI in 1961 50.800 Inflation in 1961 3.46% Inflation in 1965 4.66%

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

### Buying power of £1 in 1961

This chart shows a calculation of buying power equivalence for £1 in 1961 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.87 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.87 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 1961 dollars, the chart below shows how £1 buys less over the past 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:

Year Pound Value Inflation Rate
1961 £1.00 3.46%
1962 £1.04 4.33%
1963 £1.06 1.89%
1964 £1.10 3.33%
1965 £1.15 4.66%
1966 £1.19 3.94%
1967 £1.23 2.64%
1968 £1.28 4.65%
1969 £1.35 5.37%
1970 £1.44 6.40%
1971 £1.57 9.44%
1972 £1.69 7.13%
1973 £1.84 9.10%
1974 £2.14 16.04%
1975 £2.65 24.24%
1976 £3.09 16.54%
1977 £3.58 15.85%
1978 £3.88 8.30%
1979 £4.40 13.39%
1980 £5.19 17.99%
1981 £5.81 11.87%
1982 £6.31 8.61%
1983 £6.60 4.59%
1984 £6.93 4.98%
1985 £7.35 6.08%
1986 £7.60 3.40%
1987 £7.91 4.17%
1988 £8.30 4.90%
1989 £8.95 7.78%
1990 £9.79 9.46%
1991 £10.37 5.87%
1992 £10.76 3.74%
1993 £10.93 1.59%
1994 £11.19 2.41%
1995 £11.58 3.47%
1996 £11.86 2.41%
1997 £12.23 3.14%
1998 £12.65 3.43%
1999 £12.84 1.54%
2000 £13.22 2.96%
2001 £13.46 1.77%
2002 £13.68 1.67%
2003 £14.08 2.89%
2004 £14.50 2.98%
2005 £14.91 2.82%
2006 £15.38 3.20%
2007 £16.04 4.29%
2008 £16.68 3.99%
2009 £16.59 -0.53%
2010 £17.36 4.61%
2011 £18.26 5.20%
2012 £18.85 3.21%
2013 £19.42 3.04%
2014 £19.88 2.36%
2015 £20.08 0.99%
2016 £20.43 1.74%
2017 £21.16 3.58%
2018 £21.68 2.48%
2019 £22.08 1.80%
2020 £22.41 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, 1961 to 1965

This inflation calculator uses the following inflation rate formula:

CPI in 1961CPI in 1965
×
1965 GBP value
=
1961 GBP value

Then plug in historical CPI values. The U.K. CPI was 58.4 in the year 1965 and 50.8 in 1961:

50.858.4
×
£1
=
£0.87

£1 in 1965 has the same "purchasing power" or "buying power" as £0.87 in 1961.

To get the total inflation rate for the 4 years between 1961 and 1965, we use the following formula:

CPI in 1961 - CPI in 1965CPI in 1965
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

50.8 - 58.458.4
×
100
=
-13%

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

• Aleksei Leonov, a Soviet cosmonaut, makes the first Spacewalk, when he leaves the Hos spacecraft for 12 minutes.
• Winston Churchill, is given the largest state funeral ever, it takes place in St Paul's Cathedral, London.
• The Supreme Court legalises the use of contraception by married couples.
• France becomes the third nation in space, after launching its first satellite.
• Lyndon B. Johnson, US President, signs the Voting Rights Act, making voting discrimination against minorities illegal.

### 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 1965 → 1961 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Feb. 2020, https://www.officialdata.org/uk/inflation/1965?amount=1&endYear=1961.