The inflation rate in the United Kingdom between 2004 and 2020 was 39.97%, which translates into a total increase of £11,992.29. This means that 30,000 pounds in 2004 are equivalent to 41,992.29 pounds in 2020. In other words, the purchasing power of £30,000 in 2004 equals £41,992.29 in 2020. The average annual inflation rate between these periods was 2.12%.
The following chart depicts the equivalence of £30,000 due to compound inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.
All calculations are performed in the local currency (GBP) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis.
The following table contains relevant indicators:
| Indicator | Value |
|---|---|
| Cumulative inflation from 2004 to 2020 | 39.97% |
| Avg. Annual inflation from 2004 to 2020 | 2.12% |
| CPI 2004 | 77.8 |
| CPI 2020 | 108.9 |
There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.
When we have both the start and end years, we can use the following formula:
To obtain the values equivalent in buying power between 2004 and 2020, use the corresponding CPI values:
Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: FV = PV × (1 + i)n, where:
In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are £30,000 worth today. There are 16 years between 2004 and 2020 and the average inflation rate was 2.124%. Therefore, we can resolve the formula like this:
| Initial Value | Equivalent value | |
|---|---|---|
| £1 pound in 2004 | → | £1.4 pounds in 2020 |
| £5 pounds in 2004 | → | £7 pounds in 2020 |
| £10 pounds in 2004 | → | £14 pounds in 2020 |
| £50 pounds in 2004 | → | £69.99 pounds in 2020 |
| £100 pounds in 2004 | → | £139.97 pounds in 2020 |
| £500 pounds in 2004 | → | £699.87 pounds in 2020 |
| £1,000 pounds in 2004 | → | £1,399.74 pounds in 2020 |
| £5,000 pounds in 2004 | → | £6,998.71 pounds in 2020 |
| £10,000 pounds in 2004 | → | £13,997.43 pounds in 2020 |
| £50,000 pounds in 2004 | → | £69,987.15 pounds in 2020 |
| £100,000 pounds in 2004 | → | £139,974.29 pounds in 2020 |
| £500,000 pounds in 2004 | → | £699,871.47 pounds in 2020 |
| £1,000,000 pounds in 2004 | → | £1,399,742.93 pounds in 2020 |
| Cumulative inflation 2004-2020 | 39.97% |
| Avg. annual inflation 2004-2020 | 2.12% |
| CPI 2004 | 77.8 |
| CPI 2020 | 108.9 |
| Period | Value |
|---|---|
| 2004 | 30,000 |
| 2005 | 30,616.97 |
| 2006 | 31,388.17 |
| 2007 | 32,120.82 |
| 2008 | 33,239.07 |
| 2009 | 33,894.6 |
| 2010 | 34,742.93 |
| 2011 | 36,092.54 |
| 2012 | 37,017.99 |
| 2013 | 37,866.32 |
| 2014 | 38,406.17 |
| 2015 | 38,560.41 |
| 2016 | 38,946.02 |
| 2017 | 39,948.59 |
| 2018 | 40,874.04 |
| 2019 | 41,568.12 |
| 2020 | 41,992.29 |
All available years
Today's value of british pounds by year:
1955 | 1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Other currencies: