# £100 in 1974 is worth £1,049.07 today

£

## Why a pound today is worth only 10% of a pound in 1974

Updated: September 11, 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 949.07% higher than average prices since 1974. This means that a pound today only buys 9.53% of what it could buy in 1974. The British pound experienced an average inflation rate of 5.24% per year during this period, causing the real value of a pound to decrease.

In other words, £100 in 1974 is equivalent in purchasing power to about £1,049.07 in 2020, a difference of £949.07 over 46 years.

The 1974 inflation rate was 16.04%. 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 949.07% Average inflation rate 5.24% Converted amount (£100 base) £1,049.07 Price difference (£100 base) £949.07 CPI in 1974 108.500 CPI in 2020 1,138.243 Inflation in 1974 16.04% Inflation in 2020 1.50%

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

## Buying power of £100 in 1974

This chart shows a calculation of buying power equivalence for £100 in 1974 (price index tracking began in 1750).

For example, if you started with £100, you would need to end with £1,049.07 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £100 is equivalent to £1,049.07 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 1974 dollars, the chart below shows how £100 is worth less over 46 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: 1974-2020
Year Pound Value Inflation Rate
1974 £100.00 16.04%
1975 £124.24 24.24%
1976 £144.79 16.54%
1977 £167.74 15.85%
1978 £181.66 8.30%
1979 £205.99 13.39%
1980 £243.04 17.99%
1981 £271.89 11.87%
1982 £295.30 8.61%
1983 £308.85 4.59%
1984 £324.24 4.98%
1985 £343.96 6.08%
1986 £355.67 3.40%
1987 £370.51 4.17%
1988 £388.66 4.90%
1989 £418.89 7.78%
1990 £458.53 9.46%
1991 £485.44 5.87%
1992 £503.59 3.74%
1993 £511.61 1.59%
1994 £523.96 2.41%
1995 £542.12 3.47%
1996 £555.21 2.41%
1997 £572.63 3.14%
1998 £592.26 3.43%
1999 £601.38 1.54%
2000 £619.17 2.96%
2001 £630.14 1.77%
2002 £640.65 1.67%
2003 £659.17 2.89%
2004 £678.80 2.98%
2005 £697.97 2.82%
2006 £720.28 3.20%
2007 £751.15 4.29%
2008 £781.11 3.99%
2009 £776.96 -0.53%
2010 £812.81 4.61%
2011 £855.12 5.20%
2012 £882.58 3.21%
2013 £909.40 3.04%
2014 £930.88 2.36%
2015 £940.09 0.99%
2016 £956.41 1.74%
2017 £990.69 3.58%
2018 £1,015.29 2.48%
2019 £1,033.57 1.80%
2020 £1,049.07 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 40 more rows

This conversion table shows various other 1974 amounts in today's pounds, based on the 949.07% change in prices:

Conversion Table: Value of a pound today
Initial value Equivalent value
£1 pound in 1974 £10.49 pounds today
£5 pounds in 1974 £52.45 pounds today
£10 pounds in 1974 £104.91 pounds today
£50 pounds in 1974 £524.54 pounds today
£100 pounds in 1974 £1,049.07 pounds today
£500 pounds in 1974 £5,245.36 pounds today
£1,000 pounds in 1974 £10,490.72 pounds today
£5,000 pounds in 1974 £52,453.61 pounds today
£10,000 pounds in 1974 £104,907.22 pounds today
£50,000 pounds in 1974 £524,536.11 pounds today
£100,000 pounds in 1974 £1,049,072.22 pounds today
£500,000 pounds in 1974 £5,245,361.11 pounds today
£1,000,000 pounds in 1974 £10,490,722.22 pounds today

## How to Calculate Inflation Rate for £100 since 1974

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

CPI today CPI in 1974
×
1974 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 108.5 in the year 1974 and 1138.2433607545 in 2020:

1138.2433607545108.5
×
£100
=
£1,049.07

£100 in 1974 has the same "purchasing power" or "buying power" as £1,049.07 in 2020.

To get the total inflation rate for the 46 years between 1974 and 2020, we use the following formula:

CPI in 2020 - CPI in 1974CPI in 1974
×
100
=
Cumulative inflation rate (46 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 108.5108.5
×
100
=
949%

## News headlines from 1974

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

• Ayatollah Khomeini, appeals for an Islamic republic of Iran.
• The 1,000th victim of the Northern Ireland conflict between republican and loyalist paramilitaries is taken.
• President Richard Nixon announces his resignation.

## 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 1974 pounds today | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 1 Oct. 2020, https://www.officialdata.org/uk/inflation/1974?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.

#### About the author

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 949.07% Average inflation rate 5.24% Converted amount (£100 base) £1,049.07 Price difference (£100 base) £949.07 CPI in 1974 108.500 CPI in 2020 1,138.243 Inflation in 1974 16.04% Inflation in 2020 1.50%