# £1 in 1973 is worth £0.69 in 1973

£

## Value of £1 from 1975 to 1973

According to the Office for National Statistics composite price index, prices in 1973 are 30.64% lower than average prices since 1975. The British pound experienced an average inflation rate of 20.07% per year during this period, causing the real value of a pound to decrease.

In other words, £1 in 1975 is equivalent in purchasing power to about £0.69 in 1973, a difference of £-0.31 over 2 years.

The 1973 inflation rate was 9.10%. The inflation rate in 1975 was 24.24%. The 1975 inflation rate is higher compared to the average inflation rate of 4.86% per year between 1975 and 2020.

 Cumulative price change -30.64% Average inflation rate 20.07% Converted amount (£1 base) £0.69 Price difference (£1 base) £-0.31 CPI in 1975 134.800 CPI in 1973 93.500 Inflation in 1973 9.10% Inflation in 1975 24.24%

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

## Buying power of £1 in 1973

This chart shows a calculation of buying power equivalence for £1 in 1973 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.69 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.69 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 1973 dollars, the chart below shows how £1 is worth less over 2 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: 1973-1975
Year Pound Value Inflation Rate
1973 £1.00 9.10%
1974 £1.16 16.04%
1975 £1.44 24.24%
1976 £1.68 16.54%
1977 £1.95 15.85%
1978 £2.11 8.30%
1979 £2.39 13.39%
1980 £2.82 17.99%
1981 £3.16 11.87%
1982 £3.43 8.61%
1983 £3.58 4.59%
1984 £3.76 4.98%
1985 £3.99 6.08%
1986 £4.13 3.40%
1987 £4.30 4.17%
1988 £4.51 4.90%
1989 £4.86 7.78%
1990 £5.32 9.46%
1991 £5.63 5.87%
1992 £5.84 3.74%
1993 £5.94 1.59%
1994 £6.08 2.41%
1995 £6.29 3.47%
1996 £6.44 2.41%
1997 £6.64 3.14%
1998 £6.87 3.43%
1999 £6.98 1.54%
2000 £7.19 2.96%
2001 £7.31 1.77%
2002 £7.43 1.67%
2003 £7.65 2.89%
2004 £7.88 2.98%
2005 £8.10 2.82%
2006 £8.36 3.20%
2007 £8.72 4.29%
2008 £9.06 3.99%
2009 £9.02 -0.53%
2010 £9.43 4.61%
2011 £9.92 5.20%
2012 £10.24 3.21%
2013 £10.55 3.04%
2014 £10.80 2.36%
2015 £10.91 0.99%
2016 £11.10 1.74%
2017 £11.50 3.58%
2018 £11.78 2.48%
2019 £11.99 1.80%
2020 £12.17 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1973 amounts in 1975 pounds, based on the -30.64% change in prices:

Conversion Table: Value of a pound in 1975
Initial value Equivalent value
£1 pound in 1973 £1.44 pounds in 1975
£5 pounds in 1973 £7.21 pounds in 1975
£10 pounds in 1973 £14.42 pounds in 1975
£50 pounds in 1973 £72.09 pounds in 1975
£100 pounds in 1973 £144.17 pounds in 1975
£500 pounds in 1973 £720.86 pounds in 1975
£1,000 pounds in 1973 £1,441.71 pounds in 1975
£5,000 pounds in 1973 £7,208.56 pounds in 1975
£10,000 pounds in 1973 £14,417.11 pounds in 1975
£50,000 pounds in 1973 £72,085.56 pounds in 1975
£100,000 pounds in 1973 £144,171.12 pounds in 1975
£500,000 pounds in 1973 £720,855.61 pounds in 1975
£1,000,000 pounds in 1973 £1,441,711.23 pounds in 1975

## How to Calculate Inflation Rate for £1, 1973 to 1975

Our calculations use the following inflation rate formula to calculate the change in value between 1973 and 1975:

CPI in 1973 CPI in 1975
×
1975 GBP value
=
1973 GBP value

Then plug in historical CPI values. The U.K. CPI was 134.8 in the year 1975 and 93.5 in 1973:

93.5134.8
×
£1
=
£0.69

£1 in 1975 has the same "purchasing power" or "buying power" as £0.69 in 1973.

To get the total inflation rate for the 2 years between 1973 and 1975, we use the following formula:

CPI in 1973 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

93.5 - 134.8134.8
×
100
=
-31%

## News headlines from 1973

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

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

## 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 1975 → 1973 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 May. 2020, https://www.officialdata.org/uk/inflation/1975?amount=1&endYear=1973.

Special thanks to QuickChart for providing downloadable chart images.

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 -30.64% Average inflation rate 20.07% Converted amount (£1 base) £0.69 Price difference (£1 base) £-0.31 CPI in 1975 134.800 CPI in 1973 93.500 Inflation in 1973 9.10% Inflation in 1975 24.24%