# £1 in 2000 is worth £0.96 in 1998

£

## Value of £1 from 2000 to 1998

£1 in 2000 is equivalent in purchasing power to about £0.96 in 1998, an increase of £-0.04 over 2 years. The pound had an average inflation rate of 2.25% per year between 1998 and 2000, producing a cumulative price increase of -4.35%.

This means that prices in 1998 are 4.35% lower than average prices since 2000, according to the Office for National Statistics composite price index.

The 1998 inflation rate was 3.43%. The inflation rate in 2000 was 2.96%. The 2000 inflation rate is higher compared to the average inflation rate of 2.67% per year between 2000 and 2020.

 Cumulative price change -4.35% Average inflation rate 2.25% Converted amount (£1 base) £0.96 Price difference (£1 base) £-0.04 CPI in 2000 671.800 CPI in 1998 642.600 Inflation in 1998 3.43% Inflation in 2000 2.96% £1 in 2000 £0.96 in 1998

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

## Buying power of £1 in 1998

This chart shows a calculation of buying power equivalence for £1 in 1998 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.96 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.96 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 1998 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: 1998-2000
Year Pound Value Inflation Rate
1998 £1.00 3.43%
1999 £1.02 1.54%
2000 £1.05 2.96%
2001 £1.06 1.77%
2002 £1.08 1.67%
2003 £1.11 2.89%
2004 £1.15 2.98%
2005 £1.18 2.82%
2006 £1.22 3.20%
2007 £1.27 4.29%
2008 £1.32 3.99%
2009 £1.31 -0.53%
2010 £1.37 4.61%
2011 £1.44 5.20%
2012 £1.49 3.21%
2013 £1.54 3.04%
2014 £1.57 2.36%
2015 £1.59 0.99%
2016 £1.61 1.74%
2017 £1.67 3.58%
2018 £1.71 2.48%
2019 £1.75 1.80%
2020 £1.77 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1998 amounts in 2000 pounds, based on the -4.35% change in prices:

Conversion: 1998 pounds in 2000
Initial value Equivalent value
£1 pound in 1998 £1.05 pounds in 2000
£5 pounds in 1998 £5.23 pounds in 2000
£10 pounds in 1998 £10.45 pounds in 2000
£50 pounds in 1998 £52.27 pounds in 2000
£100 pounds in 1998 £104.54 pounds in 2000
£500 pounds in 1998 £522.72 pounds in 2000
£1,000 pounds in 1998 £1,045.44 pounds in 2000
£5,000 pounds in 1998 £5,227.20 pounds in 2000
£10,000 pounds in 1998 £10,454.40 pounds in 2000
£50,000 pounds in 1998 £52,272.02 pounds in 2000
£100,000 pounds in 1998 £104,544.04 pounds in 2000
£500,000 pounds in 1998 £522,720.20 pounds in 2000
£1,000,000 pounds in 1998 £1,045,440.40 pounds in 2000

## How to Calculate Inflation Rate for £1, 1998 to 2000

Our calculations use the following inflation rate formula to calculate the change in value between 1998 and 2000:

CPI in 1998 CPI in 2000
×
2000 GBP value
=
1998 GBP value

Then plug in historical CPI values. The U.K. CPI was 671.8 in the year 2000 and 642.6 in 1998:

642.6671.8
×
£1
=
£0.96

£1 in 2000 has the same "purchasing power" or "buying power" as £0.96 in 1998.

To get the total inflation rate for the 2 years between 1998 and 2000, we use the following formula:

CPI in 1998 - CPI in 2000CPI in 2000
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

642.6 - 671.8671.8
×
100
=
-4%

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

• Steve Ballmer becomes CEO of Microsoft after Bill Gates steps down.
• Dot-com bubble bursts after NASDAQ Composite stock market index peaks.
• George Bush becomes President of the U.S. in a disputed election that is eventually resolved by the Supreme Court.
• Gisborne, New Zealand becomes the first city to enter the new millennium.

## 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 2000 → 1998 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2021, https://www.officialdata.org/uk/inflation/2000?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.