# £1 in 1993 is worth £0.94 in 1993

£

## Value of £1 from 1995 to 1993

According to the Office for National Statistics composite price index, prices in 1993 are 5.63% lower than average prices since 1995. The British pound experienced an average inflation rate of 2.94% per year during this period, causing the real value of a pound to decrease.

In other words, £1 in 1995 is equivalent in purchasing power to about £0.94 in 1993, a difference of £-0.06 over 2 years.

The 1993 inflation rate was 1.59%. The inflation rate in 1995 was 3.47%. The 1995 inflation rate is higher compared to the average inflation rate of 2.68% per year between 1995 and 2020.

 Cumulative price change -5.63% Average inflation rate 2.94% Converted amount (£1 base) £0.94 Price difference (£1 base) £-0.06 CPI in 1995 588.200 CPI in 1993 555.100 Inflation in 1993 1.59% Inflation in 1995 3.47%

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

## Buying power of £1 in 1993

This chart shows a calculation of buying power equivalence for £1 in 1993 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.94 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.94 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 1993 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: 1993-1995
Year Pound Value Inflation Rate
1993 £1.00 1.59%
1994 £1.02 2.41%
1995 £1.06 3.47%
1996 £1.09 2.41%
1997 £1.12 3.14%
1998 £1.16 3.43%
1999 £1.18 1.54%
2000 £1.21 2.96%
2001 £1.23 1.77%
2002 £1.25 1.67%
2003 £1.29 2.89%
2004 £1.33 2.98%
2005 £1.36 2.82%
2006 £1.41 3.20%
2007 £1.47 4.29%
2008 £1.53 3.99%
2009 £1.52 -0.53%
2010 £1.59 4.61%
2011 £1.67 5.20%
2012 £1.73 3.21%
2013 £1.78 3.04%
2014 £1.82 2.36%
2015 £1.84 0.99%
2016 £1.87 1.74%
2017 £1.94 3.58%
2018 £1.98 2.48%
2019 £2.02 1.80%
2020 £2.05 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1993 amounts in 1995 pounds, based on the -5.63% change in prices:

Conversion Table: Value of a pound in 1995
Initial value Equivalent value
£1 pound in 1993 £1.06 pounds in 1995
£5 pounds in 1993 £5.30 pounds in 1995
£10 pounds in 1993 £10.60 pounds in 1995
£50 pounds in 1993 £52.98 pounds in 1995
£100 pounds in 1993 £105.96 pounds in 1995
£500 pounds in 1993 £529.81 pounds in 1995
£1,000 pounds in 1993 £1,059.63 pounds in 1995
£5,000 pounds in 1993 £5,298.14 pounds in 1995
£10,000 pounds in 1993 £10,596.29 pounds in 1995
£50,000 pounds in 1993 £52,981.44 pounds in 1995
£100,000 pounds in 1993 £105,962.89 pounds in 1995
£500,000 pounds in 1993 £529,814.45 pounds in 1995
£1,000,000 pounds in 1993 £1,059,628.90 pounds in 1995

## How to Calculate Inflation Rate for £1, 1993 to 1995

Our calculations use the following inflation rate formula to calculate the change in value between 1993 and 1995:

CPI in 1993 CPI in 1995
×
1995 GBP value
=
1993 GBP value

Then plug in historical CPI values. The U.K. CPI was 588.2 in the year 1995 and 555.1 in 1993:

555.1588.2
×
£1
=
£0.94

£1 in 1995 has the same "purchasing power" or "buying power" as £0.94 in 1993.

To get the total inflation rate for the 2 years between 1993 and 1995, we use the following formula:

CPI in 1993 - CPI in 1995CPI in 1995
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

555.1 - 588.2588.2
×
100
=
-6%

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

• Bosnian Serbs massacre over 7,000 Bosnian Muslims in Srebrenica.
• Scientists discover the Hale-Bopp Comet; which later became visible to the naked eye.
• Signing of the Dayton Agreement in Paris in order to end conflicts between former Yugoslavian republics
• 170 countries agree to the unconditional and indefinite extending of the Nuclear Non-proliferation Treaty.
• Austria, Finland and Sweden accede to the European Union.

## 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 1995 → 1993 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Jun. 2020, https://www.officialdata.org/uk/inflation/1995?amount=1&endYear=1993.