# £1 in 1975 is worth £2.19 in 1981

£

## Value of £1 from 1975 to 1981

According to the Office for National Statistics composite price index, prices in 1981 are 118.84% higher than average prices since 1975. The British pound experienced an average inflation rate of 13.94% 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 £2.19 in 1981, a difference of £1.19 over 6 years.

The 1975 inflation rate was 24.24%. The inflation rate in 1981 was 11.87%. The 1981 inflation rate is higher compared to the average inflation rate of 3.52% per year between 1981 and 2020.

 Cumulative price change 118.84% Average inflation rate 13.94% Converted amount (£1 base) £2.19 Price difference (£1 base) £1.19 CPI in 1975 134.800 CPI in 1981 295.000 Inflation in 1975 24.24% Inflation in 1981 11.87%

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

## Buying power of £1 in 1975

This chart shows a calculation of buying power equivalence for £1 in 1975 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £2.19 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £2.19 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 1975 dollars, the chart below shows how £1 is worth less over 6 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: 1975-1981
Year Pound Value Inflation Rate
1975 £1.00 24.24%
1976 £1.17 16.54%
1977 £1.35 15.85%
1978 £1.46 8.30%
1979 £1.66 13.39%
1980 £1.96 17.99%
1981 £2.19 11.87%
1982 £2.38 8.61%
1983 £2.49 4.59%
1984 £2.61 4.98%
1985 £2.77 6.08%
1986 £2.86 3.40%
1987 £2.98 4.17%
1988 £3.13 4.90%
1989 £3.37 7.78%
1990 £3.69 9.46%
1991 £3.91 5.87%
1992 £4.05 3.74%
1993 £4.12 1.59%
1994 £4.22 2.41%
1995 £4.36 3.47%
1996 £4.47 2.41%
1997 £4.61 3.14%
1998 £4.77 3.43%
1999 £4.84 1.54%
2000 £4.98 2.96%
2001 £5.07 1.77%
2002 £5.16 1.67%
2003 £5.31 2.89%
2004 £5.46 2.98%
2005 £5.62 2.82%
2006 £5.80 3.20%
2007 £6.05 4.29%
2008 £6.29 3.99%
2009 £6.25 -0.53%
2010 £6.54 4.61%
2011 £6.88 5.20%
2012 £7.10 3.21%
2013 £7.32 3.04%
2014 £7.49 2.36%
2015 £7.57 0.99%
2016 £7.70 1.74%
2017 £7.97 3.58%
2018 £8.17 2.48%
2019 £8.32 1.80%
2020 £8.44 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1975 amounts in 1981 pounds, based on the 118.84% change in prices:

Conversion Table: Value of a pound in 1981
Initial value Equivalent value
£1 pound in 1975 £2.19 pounds in 1981
£5 pounds in 1975 £10.94 pounds in 1981
£10 pounds in 1975 £21.88 pounds in 1981
£50 pounds in 1975 £109.42 pounds in 1981
£100 pounds in 1975 £218.84 pounds in 1981
£500 pounds in 1975 £1,094.21 pounds in 1981
£1,000 pounds in 1975 £2,188.43 pounds in 1981
£5,000 pounds in 1975 £10,942.14 pounds in 1981
£10,000 pounds in 1975 £21,884.27 pounds in 1981
£50,000 pounds in 1975 £109,421.36 pounds in 1981
£100,000 pounds in 1975 £218,842.73 pounds in 1981
£500,000 pounds in 1975 £1,094,213.65 pounds in 1981
£1,000,000 pounds in 1975 £2,188,427.30 pounds in 1981

## How to Calculate Inflation Rate for £1, 1975 to 1981

Our calculations use the following inflation rate formula to calculate the change in value between 1975 and 1981:

CPI in 1981 CPI in 1975
×
1975 GBP value
=
1981 GBP value

Then plug in historical CPI values. The U.K. CPI was 134.8 in the year 1975 and 295 in 1981:

295134.8
×
£1
=
£2.19

£1 in 1975 has the same "purchasing power" or "buying power" as £2.19 in 1981.

To get the total inflation rate for the 6 years between 1975 and 1981, we use the following formula:

CPI in 1981 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (6 years)

Plugging in the values to this equation, we get:

295 - 134.8134.8
×
100
=
119%

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 → 1981 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Oct. 2020, https://www.officialdata.org/uk/inflation/1975?amount=1&endYear=1981.

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.