# £100 in 1971 is worth £1,422.80 today

£

## Why a pound today is worth only 7% of a pound in 1971

Updated: September 11, 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 1,322.80% higher than average prices since 1971. This means that a pound today only buys 7.03% of what it could buy in 1971. The British pound experienced an average inflation rate of 5.57% per year during this period, causing the real value of a pound to decrease.

In other words, £100 in 1971 is equivalent in purchasing power to about £1,422.80 in 2020, a difference of £1,322.80 over 49 years.

The 1971 inflation rate was 9.44%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%1. If this number holds, £100 today will be equivalent in buying power to £101.50 next year.

 Cumulative price change 1,322.80% Average inflation rate 5.57% Converted amount (£100 base) £1,422.80 Price difference (£100 base) £1,322.80 CPI in 1971 80.000 CPI in 2020 1,138.243 Inflation in 1971 9.44% Inflation in 2020 1.50%

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

## Buying power of £100 in 1971

This chart shows a calculation of buying power equivalence for £100 in 1971 (price index tracking began in 1750).

For example, if you started with £100, you would need to end with £1,422.80 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £100 is equivalent to £1,422.80 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 1971 dollars, the chart below shows how £100 is worth less over 49 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: 1971-2020
Year Pound Value Inflation Rate
1971 £100.00 9.44%
1972 £107.13 7.13%
1973 £116.88 9.10%
1974 £135.63 16.04%
1975 £168.50 24.24%
1976 £196.38 16.54%
1977 £227.50 15.85%
1978 £246.38 8.30%
1979 £279.38 13.39%
1980 £329.62 17.99%
1981 £368.75 11.87%
1982 £400.50 8.61%
1983 £418.88 4.59%
1984 £439.75 4.98%
1985 £466.50 6.08%
1986 £482.37 3.40%
1987 £502.50 4.17%
1988 £527.13 4.90%
1989 £568.13 7.78%
1990 £621.88 9.46%
1991 £658.38 5.87%
1992 £683.00 3.74%
1993 £693.88 1.59%
1994 £710.63 2.41%
1995 £735.25 3.47%
1996 £753.00 2.41%
1997 £776.63 3.14%
1998 £803.25 3.43%
1999 £815.63 1.54%
2000 £839.75 2.96%
2001 £854.63 1.77%
2002 £868.88 1.67%
2003 £894.00 2.89%
2004 £920.63 2.98%
2005 £946.62 2.82%
2006 £976.88 3.20%
2007 £1,018.75 4.29%
2008 £1,059.38 3.99%
2009 £1,053.75 -0.53%
2010 £1,102.38 4.61%
2011 £1,159.75 5.20%
2012 £1,197.00 3.21%
2013 £1,233.38 3.04%
2014 £1,262.50 2.36%
2015 £1,275.00 0.99%
2016 £1,297.13 1.74%
2017 £1,343.63 3.58%
2018 £1,376.99 2.48%
2019 £1,401.78 1.80%
2020 £1,422.80 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 43 more rows

This conversion table shows various other 1971 amounts in today's pounds, based on the 1,322.80% change in prices:

Conversion Table: Value of a pound today
Initial value Equivalent value
£1 pound in 1971 £14.23 pounds today
£5 pounds in 1971 £71.14 pounds today
£10 pounds in 1971 £142.28 pounds today
£50 pounds in 1971 £711.40 pounds today
£100 pounds in 1971 £1,422.80 pounds today
£500 pounds in 1971 £7,114.02 pounds today
£1,000 pounds in 1971 £14,228.04 pounds today
£5,000 pounds in 1971 £71,140.21 pounds today
£10,000 pounds in 1971 £142,280.42 pounds today
£50,000 pounds in 1971 £711,402.10 pounds today
£100,000 pounds in 1971 £1,422,804.20 pounds today
£500,000 pounds in 1971 £7,114,021.00 pounds today
£1,000,000 pounds in 1971 £14,228,042.01 pounds today

## How to Calculate Inflation Rate for £100 since 1971

Our calculations use the following inflation rate formula to calculate the change in value between 1971 and today:

CPI today CPI in 1971
×
1971 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 80 in the year 1971 and 1138.2433607545 in 2020:

1138.243360754580
×
£100
=
£1,422.80

£100 in 1971 has the same "purchasing power" or "buying power" as £1,422.80 in 2020.

To get the total inflation rate for the 49 years between 1971 and 2020, we use the following formula:

CPI in 2020 - CPI in 1971CPI in 1971
×
100
=
Cumulative inflation rate (49 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 8080
×
100
=
1,323%

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

• Idi Amin declares himself president of Uganda.
• The Nasdaq Composite stock market index debuts with fifty companies and a starting value of 100.
• Indian troops, aided by Bengali guerrillas under Mukti Bahini, are victorious over the Pakistan army, in the battle of Garibpur.

## 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: “Value of 1971 pounds today | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 26 Sep. 2020, https://www.officialdata.org/uk/inflation/1971?amount=&startYear=&future_pct=.

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.