# £100 in 2014 is worth £112.70 today

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## Why a pound today is worth only 89% of a pound in 2014

Updated: September 11, 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 12.70% higher than average prices since 2014. This means that a pound today only buys 88.73% of what it could buy in 2014. The British pound experienced an average inflation rate of 2.01% per year during this period, causing the real value of a pound to decrease.

In other words, £100 in 2014 is equivalent in purchasing power to about £112.70 in 2020, a difference of £12.70 over 6 years.

The 2014 inflation rate was 2.36%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%1. If this number holds, £100 today will be equivalent in buying power to £101.50 next year.

 Cumulative price change 12.70% Average inflation rate 2.01% Converted amount (£100 base) £112.70 Price difference (£100 base) £12.70 CPI in 2014 1,010.000 CPI in 2020 1,138.243 Inflation in 2014 2.36% Inflation in 2020 1.50%

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

## Buying power of £100 in 2014

This chart shows a calculation of buying power equivalence for £100 in 2014 (price index tracking began in 1750).

For example, if you started with £100, you would need to end with £112.70 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £100 is equivalent to £112.70 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 2014 dollars, the chart below shows how £100 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: 2014-2020
Year Pound Value Inflation Rate
2014 £100.00 2.36%
2015 £100.99 0.99%
2016 £102.74 1.74%
2017 £106.43 3.58%
2018 £109.07 2.48%
2019 £111.03 1.80%
2020 £112.70 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2014 amounts in today's pounds, based on the 12.70% change in prices:

Conversion Table: Value of a pound today
Initial value Equivalent value
£1 pound in 2014 £1.13 pounds today
£5 pounds in 2014 £5.63 pounds today
£10 pounds in 2014 £11.27 pounds today
£50 pounds in 2014 £56.35 pounds today
£100 pounds in 2014 £112.70 pounds today
£500 pounds in 2014 £563.49 pounds today
£1,000 pounds in 2014 £1,126.97 pounds today
£5,000 pounds in 2014 £5,634.87 pounds today
£10,000 pounds in 2014 £11,269.74 pounds today
£50,000 pounds in 2014 £56,348.68 pounds today
£100,000 pounds in 2014 £112,697.36 pounds today
£500,000 pounds in 2014 £563,486.81 pounds today
£1,000,000 pounds in 2014 £1,126,973.62 pounds today

## How to Calculate Inflation Rate for £100 since 2014

Our calculations use the following inflation rate formula to calculate the change in value between 2014 and today:

CPI today CPI in 2014
×
2014 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 1010 in the year 2014 and 1138.2433607545 in 2020:

1138.24336075451010
×
£100
=
£112.70

£100 in 2014 has the same "purchasing power" or "buying power" as £112.70 in 2020.

To get the total inflation rate for the 6 years between 2014 and 2020, we use the following formula:

CPI in 2020 - CPI in 2014CPI in 2014
×
100
=
Cumulative inflation rate (6 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 10101010
×
100
=
13%

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

• Violent protests erupt in Kiev, leading to clashes between protestors and riot police: President Viktor Yanukovych is ousted five days later.
• Russia formally annexes Crimea amid international condemnation.
• ISIS forces occupy government buildings and other key strategic locations in the city of Mosul.
• Malasya Airlines Flight 17 shot down by pro-Russian separatists in Eastern Ukraine by a Buk surface-to-air missile. All 283 passengers and 15 crew were killed.

## 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: “Value of 2014 pounds today | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Sep. 2020, https://www.officialdata.org/uk/inflation/2014?amount=&startYear=&future_pct=.

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.