Value of £1 from 1985 to 1998
£1 in 1985 is equivalent in purchasing power to about £1.72 in 1998, an increase of £0.72 over 13 years. The pound had an average inflation rate of 4.27% per year between 1985 and 1998, producing a cumulative price increase of 72.19%.
This means that prices in 1998 are 1.72 times as high as average prices since 1985, according to the Office for National Statistics composite price index.
The inflation rate in 1985 was 6.08%. The inflation rate in 1998 was 3.43%. The 1998 inflation rate is higher compared to the average inflation rate of 3.09% per year between 1998 and 2024.
⌃
| Cumulative price change | 72.19% |
| Average inflation rate | 4.27% |
| Converted amount £1 base | £1.72 |
| Price difference £1 base | £0.72 |
| CPI in 1985 | 373.200 |
| CPI in 1998 | 642.600 |
| Inflation in 1985 | 6.08% |
| Inflation in 1998 | 3.43% |
| £1 in 1985 | £1.72 in 1998 |
Buying power of £1 in 1985
This chart shows a calculation of buying power equivalence for £1 in 1985 (price index tracking began in 1750).
For example, if you started with £1, you would need to end with £1.72 in order to "adjust" for inflation (sometimes refered to as "beating inflation").
When £1 is equivalent to £1.72 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 1985 dollars, the chart below shows how £1 is worth less over 13 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:
This conversion table shows various other 1985 amounts in 1998 pounds, based on the 72.19% change in prices:
| Initial value | Equivalent value |
|---|---|
| £1 pound in 1985 | £1.72 pounds in 1998 |
| £5 pounds in 1985 | £8.61 pounds in 1998 |
| £10 pounds in 1985 | £17.22 pounds in 1998 |
| £50 pounds in 1985 | £86.09 pounds in 1998 |
| £100 pounds in 1985 | £172.19 pounds in 1998 |
| £500 pounds in 1985 | £860.93 pounds in 1998 |
| £1,000 pounds in 1985 | £1,721.86 pounds in 1998 |
| £5,000 pounds in 1985 | £8,609.32 pounds in 1998 |
| £10,000 pounds in 1985 | £17,218.65 pounds in 1998 |
| £50,000 pounds in 1985 | £86,093.25 pounds in 1998 |
| £100,000 pounds in 1985 | £172,186.50 pounds in 1998 |
| £500,000 pounds in 1985 | £860,932.48 pounds in 1998 |
| £1,000,000 pounds in 1985 | £1,721,864.95 pounds in 1998 |
How to calculate inflation rate for £1, 1985 to 1998
Our calculations use the following inflation rate formula to calculate the change in value between 1985 and 1998:
CPI in 1998 CPI in 1985
×
1985 GBP value
=
1998 GBP value
Then plug in historical CPI values. The U.K. CPI was 373.2 in the year 1985 and 642.6 in 1998:
642.6373.2
×
£1
=
£1.72
£1 in 1985 has the same "purchasing power" or "buying power" as £1.72 in 1998.
To get the total inflation rate for the 13 years between 1985 and 1998, we use the following formula:
CPI in 1998 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (13 years)
Plugging in the values to this equation, we get:
642.6 - 373.2373.2
×
100
=
72%
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 the current year, which is based on The Bank of England's forecast.
You may use the following MLA citation for this page: “£1 in 1985 → 1998 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 Apr. 2024, https://www.officialdata.org/uk/inflation/1985?amount=1&endYear=1998.
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.
| Cumulative price change | 72.19% |
| Average inflation rate | 4.27% |
| Converted amount £1 base | £1.72 |
| Price difference £1 base | £0.72 |
| CPI in 1985 | 373.200 |
| CPI in 1998 | 642.600 |
| Inflation in 1985 | 6.08% |
| Inflation in 1998 | 3.43% |
| £1 in 1985 | £1.72 in 1998 |