# £1 in 1986 is worth £0.78 in 1986

£

## Value of £1 from 1990 to 1986

According to the Office for National Statistics composite price index, prices in 1986 are 22.43% lower than average prices since 1990. The British pound experienced an average inflation rate of 6.56% per year during this period, causing the real value of a pound to decrease.

In other words, £1 in 1990 is equivalent in purchasing power to about £0.78 in 1986, a difference of £-0.22 over 4 years.

The 1986 inflation rate was 3.40%. The inflation rate in 1990 was 9.46%. The 1990 inflation rate is higher compared to the average inflation rate of 2.80% per year between 1990 and 2020.

 Cumulative price change -22.43% Average inflation rate 6.56% Converted amount (£1 base) £0.78 Price difference (£1 base) £-0.22 CPI in 1990 497.500 CPI in 1986 385.900 Inflation in 1986 3.40% Inflation in 1990 9.46%

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

## Buying power of £1 in 1986

This chart shows a calculation of buying power equivalence for £1 in 1986 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.78 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.78 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 1986 dollars, the chart below shows how £1 is worth less over 4 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: 1986-1990
Year Pound Value Inflation Rate
1986 £1.00 3.40%
1987 £1.04 4.17%
1988 £1.09 4.90%
1989 £1.18 7.78%
1990 £1.29 9.46%
1991 £1.36 5.87%
1992 £1.42 3.74%
1993 £1.44 1.59%
1994 £1.47 2.41%
1995 £1.52 3.47%
1996 £1.56 2.41%
1997 £1.61 3.14%
1998 £1.67 3.43%
1999 £1.69 1.54%
2000 £1.74 2.96%
2001 £1.77 1.77%
2002 £1.80 1.67%
2003 £1.85 2.89%
2004 £1.91 2.98%
2005 £1.96 2.82%
2006 £2.03 3.20%
2007 £2.11 4.29%
2008 £2.20 3.99%
2009 £2.18 -0.53%
2010 £2.29 4.61%
2011 £2.40 5.20%
2012 £2.48 3.21%
2013 £2.56 3.04%
2014 £2.62 2.36%
2015 £2.64 0.99%
2016 £2.69 1.74%
2017 £2.79 3.58%
2018 £2.85 2.48%
2019 £2.91 1.80%
2020 £2.95 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1986 amounts in 1990 pounds, based on the -22.43% change in prices:

Conversion Table: Value of a pound in 1990
Initial value Equivalent value
£1 pound in 1986 £1.29 pounds in 1990
£5 pounds in 1986 £6.45 pounds in 1990
£10 pounds in 1986 £12.89 pounds in 1990
£50 pounds in 1986 £64.46 pounds in 1990
£100 pounds in 1986 £128.92 pounds in 1990
£500 pounds in 1986 £644.60 pounds in 1990
£1,000 pounds in 1986 £1,289.19 pounds in 1990
£5,000 pounds in 1986 £6,445.97 pounds in 1990
£10,000 pounds in 1986 £12,891.94 pounds in 1990
£50,000 pounds in 1986 £64,459.70 pounds in 1990
£100,000 pounds in 1986 £128,919.41 pounds in 1990
£500,000 pounds in 1986 £644,597.05 pounds in 1990
£1,000,000 pounds in 1986 £1,289,194.09 pounds in 1990

## How to Calculate Inflation Rate for £1, 1986 to 1990

Our calculations use the following inflation rate formula to calculate the change in value between 1986 and 1990:

CPI in 1986 CPI in 1990
×
1990 GBP value
=
1986 GBP value

Then plug in historical CPI values. The U.K. CPI was 497.5 in the year 1990 and 385.9 in 1986:

385.9497.5
×
£1
=
£0.78

£1 in 1990 has the same "purchasing power" or "buying power" as £0.78 in 1986.

To get the total inflation rate for the 4 years between 1986 and 1990, we use the following formula:

CPI in 1986 - CPI in 1990CPI in 1990
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

385.9 - 497.5497.5
×
100
=
-22%

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

• Nelson Mandela is released having spent 27 years in South African prison.
• The Hubble Space Telescope takes its first photos from space.
• Dr Penny Jamieson, becomes the first woman to be made an Anglican Bishop, in New Zeeland
• The United States sends troops to Saudi Arabia, marking the beginning of Operation Desert Shield.

## 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 1990 → 1986 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 May. 2020, https://www.officialdata.org/uk/inflation/1990?amount=1&endYear=1986.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

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 -22.43% Average inflation rate 6.56% Converted amount (£1 base) £0.78 Price difference (£1 base) £-0.22 CPI in 1990 497.500 CPI in 1986 385.900 Inflation in 1986 3.40% Inflation in 1990 9.46%