£1 in 2005 is worth £0.92 in 2002

Value of £1 from 2005 to 2002

£1 in 2005 is equivalent in purchasing power to about £0.92 in 2002, an increase of £-0.08 over 3 years. The pound had an average inflation rate of 2.90% per year between 2002 and 2005, producing a cumulative price increase of -8.21%.

This means that prices in 2002 are 8.21% lower than average prices since 2005, according to the Office for National Statistics composite price index.

The inflation rate in 2002 was 1.67%. The inflation rate in 2005 was 2.82%. The 2005 inflation rate is lower compared to the average inflation rate of 3.35% per year between 2005 and 2024.


Inflation from 2005 to 2002
Cumulative price change-8.21%
Average inflation rate2.90%
Converted amount
£1 base
£0.92
Price difference
£1 base
£-0.08
CPI in 2005757.300
CPI in 2002695.100
Inflation in 20021.67%
Inflation in 20052.82%
£1 in 2005£0.92 in 2002

Recent GBP inflation
Annual Rate, the Office for National Statistics CPI
Download

Buying power of £1 in 2002

This chart shows a calculation of buying power equivalence for £1 in 2002 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £0.92 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £0.92 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 2002 dollars, the chart below shows how £1 is worth less over 3 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: 2002-2005
YearPound ValueInflation Rate
2002£1.001.67%
2003£1.032.89%
2004£1.062.98%
2005£1.092.82%
2006£1.123.20%
2007£1.174.29%
2008£1.223.99%
2009£1.21-0.53%
2010£1.274.61%
2011£1.335.20%
2012£1.383.21%
2013£1.423.04%
2014£1.452.36%
2015£1.470.99%
2016£1.491.74%
2017£1.553.58%
2018£1.592.70%
2019£1.632.50%
2020£1.661.80%
2021£1.702.49%
2022£1.837.90%
2023£1.967.07%
2024£2.043.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2002 amounts in 2005 pounds, based on the -8.21% change in prices:

Conversion: 2002 pounds in 2005
Initial valueEquivalent value
£1 pound in 2002£1.09 pounds in 2005
£5 pounds in 2002£5.45 pounds in 2005
£10 pounds in 2002£10.89 pounds in 2005
£50 pounds in 2002£54.47 pounds in 2005
£100 pounds in 2002£108.95 pounds in 2005
£500 pounds in 2002£544.74 pounds in 2005
£1,000 pounds in 2002£1,089.48 pounds in 2005
£5,000 pounds in 2002£5,447.42 pounds in 2005
£10,000 pounds in 2002£10,894.84 pounds in 2005
£50,000 pounds in 2002£54,474.18 pounds in 2005
£100,000 pounds in 2002£108,948.35 pounds in 2005
£500,000 pounds in 2002£544,741.76 pounds in 2005
£1,000,000 pounds in 2002£1,089,483.53 pounds in 2005

How to calculate inflation rate for £1, 2002 to 2005

Our calculations use the following inflation rate formula to calculate the change in value between 2002 and 2005:

CPI in 2002 CPI in 2005
×
2005 GBP value
=
2002 GBP value

Then plug in historical CPI values. The U.K. CPI was 757.3 in the year 2005 and 695.1 in 2002:

695.1757.3
×
£1
=
£0.92

£1 in 2005 has the same "purchasing power" or "buying power" as £0.92 in 2002.

To get the total inflation rate for the 3 years between 2002 and 2005, we use the following formula:

CPI in 2002 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

695.1 - 757.3757.3
×
100
=
-8%

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 2005 → 2002 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Mar. 2024, https://www.officialdata.org/uk/inflation/2005?amount=1&endYear=2002.

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.


Ian Webster

About the author

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.

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Inflation from 2005 to 2002
Cumulative price change-8.21%
Average inflation rate2.90%
Converted amount
£1 base
£0.92
Price difference
£1 base
£-0.08
CPI in 2005757.300
CPI in 2002695.100
Inflation in 20021.67%
Inflation in 20052.82%
£1 in 2005£0.92 in 2002