£1 in 2020 is worth £1.18 in 2023

👉 You may be interested in £1 in 2020 → 2024

Value of £1 from 2020 to 2023

£1 in 2020 is equivalent in purchasing power to about £1.18 in 2023, an increase of £0.18 over 3 years. The pound had an average inflation rate of 5.79% per year between 2020 and 2023, producing a cumulative price increase of 18.41%.

This means that prices in 2023 are 1.18 times as high as average prices since 2020, according to the Office for National Statistics composite price index.

The inflation rate in 2020 was 1.80%. The inflation rate in 2023 was 7.07%. The 2023 inflation rate is higher compared to the average inflation rate of 3.90% per year between 2023 and 2024.


Inflation from 2020 to 2023
Cumulative price change18.41%
Average inflation rate5.79%
Converted amount
£1 base
£1.18
Price difference
£1 base
£0.18
CPI in 20201,151.888
CPI in 20231,363.943
Inflation in 20201.80%
Inflation in 20237.07%
£1 in 2020£1.18 in 2023

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

Buying power of £1 in 2020

This chart shows a calculation of buying power equivalence for £1 in 2020 (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 2020 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: 2020-2023
YearPound ValueInflation Rate
2020£1.001.80%
2021£1.022.49%
2022£1.117.90%
2023£1.187.07%
2024£1.233.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2020 amounts in 2023 pounds, based on the 18.41% change in prices:

Conversion: 2020 pounds in 2023
Initial valueEquivalent value
£1 pound in 2020£1.18 pounds in 2023
£5 pounds in 2020£5.92 pounds in 2023
£10 pounds in 2020£11.84 pounds in 2023
£50 pounds in 2020£59.20 pounds in 2023
£100 pounds in 2020£118.41 pounds in 2023
£500 pounds in 2020£592.05 pounds in 2023
£1,000 pounds in 2020£1,184.09 pounds in 2023
£5,000 pounds in 2020£5,920.47 pounds in 2023
£10,000 pounds in 2020£11,840.93 pounds in 2023
£50,000 pounds in 2020£59,204.66 pounds in 2023
£100,000 pounds in 2020£118,409.33 pounds in 2023
£500,000 pounds in 2020£592,046.64 pounds in 2023
£1,000,000 pounds in 2020£1,184,093.28 pounds in 2023

How to calculate inflation rate for £1, 2020 to 2023

Our calculations use the following inflation rate formula to calculate the change in value between 2020 and 2023:

CPI in 2023 CPI in 2020
×
2020 GBP value
=
2023 GBP value

Then plug in historical CPI values. The U.K. CPI was 1151.88772393 in the year 2020 and 1363.9425132808383 in 2023:

1363.94251328083831151.88772393
×
£1
=
£1.18

£1 in 2020 has the same "purchasing power" or "buying power" as £1.18 in 2023.

To get the total inflation rate for the 3 years between 2020 and 2023, we use the following formula:

CPI in 2023 - CPI in 2020CPI in 2020
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

1363.9425132808383 - 1151.887723931151.88772393
×
100
=
18%

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 2020 → 2023 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Mar. 2024, https://www.officialdata.org/uk/inflation/2020?amount=1&endYear=2023.

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.

Email · LinkedIn · Twitter


» Read more about inflation and investment.

Inflation from 2020 to 2023
Cumulative price change18.41%
Average inflation rate5.79%
Converted amount
£1 base
£1.18
Price difference
£1 base
£0.18
CPI in 20201,151.888
CPI in 20231,363.943
Inflation in 20201.80%
Inflation in 20237.07%
£1 in 2020£1.18 in 2023