# £1 in 2010 is worth £1.18 in 2016

£
👉 You may be interested in £1 in 2010 → 2020

## Value of £1 from 2010 to 2016

According to the Office for National Statistics composite price index, prices in 2016 are 17.67% higher than average prices since 2010. The British pound experienced an average inflation rate of 2.75% per year during this period, causing the real value of a pound to decrease.

In other words, £1 in 2010 is equivalent in purchasing power to about £1.18 in 2016, a difference of £0.18 over 6 years.

The 2010 inflation rate was 4.61%. The inflation rate in 2016 was 1.74%. The 2016 inflation rate is lower compared to the average inflation rate of 2.34% per year between 2016 and 2020.

 Cumulative price change 17.67% Average inflation rate 2.75% Converted amount (£1 base) £1.18 Price difference (£1 base) £0.18 CPI in 2010 881.900 CPI in 2016 1,037.700 Inflation in 2010 4.61% Inflation in 2016 1.74%

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

## Buying power of £1 in 2010

This chart shows a calculation of buying power equivalence for £1 in 2010 (price index tracking began in 1750).

For example, if you started with £1, you would need to end with £1.18 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1 is equivalent to £1.18 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 2010 dollars, the chart below shows how £1 is worth less over 6 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: 2010-2016
Year Pound Value Inflation Rate
2010 £1.00 4.61%
2011 £1.05 5.20%
2012 £1.09 3.21%
2013 £1.12 3.04%
2014 £1.15 2.36%
2015 £1.16 0.99%
2016 £1.18 1.74%
2017 £1.22 3.58%
2018 £1.25 2.48%
2019 £1.27 1.80%
2020 £1.29 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2010 amounts in 2016 pounds, based on the 17.67% change in prices:

Conversion Table: Value of a pound in 2016
Initial value Equivalent value
£1 pound in 2010 £1.18 pounds in 2016
£5 pounds in 2010 £5.88 pounds in 2016
£10 pounds in 2010 £11.77 pounds in 2016
£50 pounds in 2010 £58.83 pounds in 2016
£100 pounds in 2010 £117.67 pounds in 2016
£500 pounds in 2010 £588.33 pounds in 2016
£1,000 pounds in 2010 £1,176.66 pounds in 2016
£5,000 pounds in 2010 £5,883.32 pounds in 2016
£10,000 pounds in 2010 £11,766.64 pounds in 2016
£50,000 pounds in 2010 £58,833.20 pounds in 2016
£100,000 pounds in 2010 £117,666.40 pounds in 2016
£500,000 pounds in 2010 £588,332.01 pounds in 2016
£1,000,000 pounds in 2010 £1,176,664.02 pounds in 2016

## How to Calculate Inflation Rate for £1, 2010 to 2016

Our calculations use the following inflation rate formula to calculate the change in value between 2010 and 2016:

CPI in 2016 CPI in 2010
×
2010 GBP value
=
2016 GBP value

Then plug in historical CPI values. The U.K. CPI was 881.9 in the year 2010 and 1037.7 in 2016:

1037.7881.9
×
£1
=
£1.18

£1 in 2010 has the same "purchasing power" or "buying power" as £1.18 in 2016.

To get the total inflation rate for the 6 years between 2010 and 2016, we use the following formula:

CPI in 2016 - CPI in 2010CPI in 2010
×
100
=
Cumulative inflation rate (6 years)

Plugging in the values to this equation, we get:

1037.7 - 881.9881.9
×
100
=
18%

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

• The Copiapo mining accident in Chile ends, after 33 miners resurface having spent 69 days trapped in the ruins.
• Big Haiti earthquake kills 230,000 people and leaves most of Port-au-Prince, its capital, in ruins.
• An explosion on the Deepwater Horizon (a drilling rig), kills 11 people and spills a massive amount of oil into the Gulf of Mexico.
• The US army abolishes the "Don't Ask Don't Tell" policy, which had banned homosexuals from openly serving in the US military.

## 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 2010 → 2016 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 1 Jun. 2020, https://www.officialdata.org/uk/inflation/2010?amount=1&endYear=2016.