# £1 in 1965 is worth £1.86 in 1974

£

## Value of £1 from 1965 to 1974

£1 in 1965 is equivalent in purchasing power to about £1.86 in 1974, an increase of £0.86 over 9 years. The pound had an average inflation rate of 7.12% per year between 1965 and 1974, producing a cumulative price increase of 85.79%.

This means that prices in 1974 are 1.86 times higher than average prices since 1965, according to the Office for National Statistics composite price index.

The 1965 inflation rate was 4.66%. The inflation rate in 1974 was 16.04%. The 1974 inflation rate is higher compared to the average inflation rate of 5.17% per year between 1974 and 2021.

 Cumulative price change 85.79% Average inflation rate 7.12% Converted amount (£1 base) £1.86 Price difference (£1 base) £0.86 CPI in 1965 58.400 CPI in 1974 108.500 Inflation in 1965 4.66% Inflation in 1974 16.04% £1 in 1965 £1.86 in 1974

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

## Buying power of £1 in 1965

This chart shows a calculation of buying power equivalence for £1 in 1965 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £1.86 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £1.86 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 1965 dollars, the chart below shows how £1 is worth less over 9 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: 1965-1974
Year Pound Value Inflation Rate
1965 £1.00 4.66%
1966 £1.04 3.94%
1967 £1.07 2.64%
1968 £1.12 4.65%
1969 £1.18 5.37%
1970 £1.25 6.40%
1971 £1.37 9.44%
1972 £1.47 7.13%
1973 £1.60 9.10%
1974 £1.86 16.04%
1975 £2.31 24.24%
1976 £2.69 16.54%
1977 £3.12 15.85%
1978 £3.38 8.30%
1979 £3.83 13.39%
1980 £4.52 17.99%
1981 £5.05 11.87%
1982 £5.49 8.61%
1983 £5.74 4.59%
1984 £6.02 4.98%
1985 £6.39 6.08%
1986 £6.61 3.40%
1987 £6.88 4.17%
1988 £7.22 4.90%
1989 £7.78 7.78%
1990 £8.52 9.46%
1991 £9.02 5.87%
1992 £9.36 3.74%
1993 £9.51 1.59%
1994 £9.73 2.41%
1995 £10.07 3.47%
1996 £10.32 2.41%
1997 £10.64 3.14%
1998 £11.00 3.43%
1999 £11.17 1.54%
2000 £11.50 2.96%
2001 £11.71 1.77%
2002 £11.90 1.67%
2003 £12.25 2.89%
2004 £12.61 2.98%
2005 £12.97 2.82%
2006 £13.38 3.20%
2007 £13.96 4.29%
2008 £14.51 3.99%
2009 £14.43 -0.53%
2010 £15.10 4.61%
2011 £15.89 5.20%
2012 £16.40 3.21%
2013 £16.90 3.04%
2014 £17.29 2.36%
2015 £17.47 0.99%
2016 £17.77 1.74%
2017 £18.41 3.58%
2018 £18.90 2.70%
2019 £19.38 2.50%
2020 £19.72 1.80%
2021 £19.86 0.70%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 3 more rows

This conversion table shows various other 1965 amounts in 1974 pounds, based on the 85.79% change in prices:

Conversion: 1965 pounds in 1974
Initial value Equivalent value
£1 pound in 1965 £1.86 pounds in 1974
£5 pounds in 1965 £9.29 pounds in 1974
£10 pounds in 1965 £18.58 pounds in 1974
£50 pounds in 1965 £92.89 pounds in 1974
£100 pounds in 1965 £185.79 pounds in 1974
£500 pounds in 1965 £928.94 pounds in 1974
£1,000 pounds in 1965 £1,857.88 pounds in 1974
£5,000 pounds in 1965 £9,289.38 pounds in 1974
£10,000 pounds in 1965 £18,578.77 pounds in 1974
£50,000 pounds in 1965 £92,893.84 pounds in 1974
£100,000 pounds in 1965 £185,787.67 pounds in 1974
£500,000 pounds in 1965 £928,938.36 pounds in 1974
£1,000,000 pounds in 1965 £1,857,876.71 pounds in 1974

## How to Calculate Inflation Rate for £1, 1965 to 1974

Our calculations use the following inflation rate formula to calculate the change in value between 1965 and 1974:

CPI in 1974 CPI in 1965
×
1965 GBP value
=
1974 GBP value

Then plug in historical CPI values. The U.K. CPI was 58.4 in the year 1965 and 108.5 in 1974:

108.558.4
×
£1
=
£1.86

£1 in 1965 has the same "purchasing power" or "buying power" as £1.86 in 1974.

To get the total inflation rate for the 9 years between 1965 and 1974, we use the following formula:

CPI in 1974 - CPI in 1965CPI in 1965
×
100
=
Cumulative inflation rate (9 years)

Plugging in the values to this equation, we get:

108.5 - 58.458.4
×
100
=
86%

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 → 1974 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Sep. 2021, https://www.officialdata.org/uk/inflation/1965?amount=1&endYear=1974.

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.