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# £795 in 1988 → £2,145.85 in 2020

### U.K. Inflation Rate, £795 in 1988 to 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 169.92% higher than average prices since 1988. The British pound experienced an average inflation rate of 3.15% per year during this period, meaning the real value of a pound decreased.

In other words, £795 in 1988 is equivalent in purchasing power to about £2,145.85 in 2020, a difference of £1,350.85 over 32 years.

The 1988 inflation rate was 4.90%. The current inflation rate (2019 to 2020) is now 1.50%1. If this number holds, £795 today will be equivalent in buying power to £806.92 next year.

 Cumulative price change 169.92% Average inflation rate 3.15% Converted amount (£795 base) £2,145.85 Price difference (£795 base) £1,350.85 CPI in 1988 421.700 CPI in 2020 1,138.243 Inflation in 1988 4.90% Inflation in 2020 1.50%

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

### Buying power of £795 in 1988

This chart shows a calculation of buying power equivalence for £795 in 1988 (price index tracking began in 1750).

For example, if you started with £795, you would need to end with £2,145.85 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £795 is equivalent to £2,145.85 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 1988 dollars, the chart below shows how £795 buys less over the past 32 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:

Year Pound Value Inflation Rate
1988 £795.00 4.90%
1989 £856.84 7.78%
1990 £937.90 9.46%
1991 £992.95 5.87%
1992 £1,030.09 3.74%
1993 £1,046.49 1.59%
1994 £1,071.75 2.41%
1995 £1,108.89 3.47%
1996 £1,135.66 2.41%
1997 £1,171.29 3.14%
1998 £1,211.45 3.43%
1999 £1,230.11 1.54%
2000 £1,266.50 2.96%
2001 £1,288.93 1.77%
2002 £1,310.42 1.67%
2003 £1,348.31 2.89%
2004 £1,388.47 2.98%
2005 £1,427.68 2.82%
2006 £1,473.30 3.20%
2007 £1,536.46 4.29%
2008 £1,597.73 3.99%
2009 £1,589.25 -0.53%
2010 £1,662.58 4.61%
2011 £1,749.11 5.20%
2012 £1,805.29 3.21%
2013 £1,860.15 3.04%
2014 £1,904.08 2.36%
2015 £1,922.93 0.99%
2016 £1,956.30 1.74%
2017 £2,026.43 3.58%
2018 £2,076.75 2.48%
2019 £2,114.13 1.80%
2020 £2,145.85 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 26 more rows

### How to Calculate Inflation Rate for £795 since 1988

This inflation calculator uses the following inflation rate formula:

CPI in 2020CPI in 1988
×
1988 GBP value
=
2020 GBP value

Then plug in historical CPI values. The U.K. CPI was 421.7 in the year 1988 and 1138.2433607545 in 2020:

1138.2433607545421.7
×
£795
=
£2,145.85

£795 in 1988 has the same "purchasing power" or "buying power" as £2,145.85 in 2020.

To get the total inflation rate for the 32 years between 1988 and 2020, we use the following formula:

CPI in 2020 - CPI in 1988CPI in 1988
×
100
=
Cumulative inflation rate (32 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 421.7421.7
×
100
=
170%

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

• The USSR withdraws its troops from Afghanistan.
• Iran and Iraq announce a ceasefire after 8 years of war.
• Approximately 50,000 Kurdish civilians and soldiers are killed by Iraq.
• Mikhail Gorbachev Chairman becomes president of the USSR.
• Benazir Bhutto becomes the first female leader of a Muslim country in Pakistan.

### 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: “£795 in 1988 → 2020 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 17 Jan. 2020, https://www.officialdata.org/uk/inflation/1988?amount=795.