UK Inflation Calculator
See what money was worth in the past — or what it will need to be worth in the future. Compare purchasing power between any two years from 1900 to 2026.
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Frequently asked questions
How does the UK inflation calculator work?▾
It uses the Consumer Price Index (CPI) to compare the purchasing power of money between two years. The CPI measures the average change in prices of goods and services over time.
What is CPI?▾
The Consumer Price Index (CPI) is the UK government official measure of inflation. It tracks the prices of a representative basket of goods and services purchased by households. The ONS publishes CPI monthly.
What is the difference between CPI and RPI?▾
RPI (Retail Price Index) includes mortgage interest payments and tends to be higher than CPI. CPI is the official inflation measure used by the government and Bank of England. RPI is being phased out.
What has UK inflation been historically?▾
The UK has averaged around 3-4% annual inflation over the past 100 years. There have been periods of very high inflation (1970s peak of 25%), deflation (1930s), and the recent spike in 2022-23 above 10%.
Why does money lose value over time?▾
Inflation means the general price level rises over time, so each pound buys less. This is caused by factors including money supply growth, demand exceeding supply, rising costs of production, and government fiscal policy.
How accurate are historical inflation figures?▾
CPI data is reliable from the 1940s onwards. Pre-1940 figures are estimates based on available price data. The composition of the basket has changed dramatically — items like smartphones did not exist in 1970.
Should I use inflation for salary comparisons?▾
Inflation gives a rough comparison, but real wages also depend on taxation, benefits, and what goods are available. A £10,000 salary in 1980 had different purchasing power than the CPI-adjusted equivalent today.
What is the Bank of England inflation target?▾
The Bank of England targets 2% CPI inflation. If inflation is above or below target by more than 1 percentage point, the Governor must write a letter to the Chancellor explaining why and what action is being taken.
How does inflation affect my savings?▾
If your savings interest rate is below the inflation rate, your money is losing real purchasing power. For example, if inflation is 4% and your savings earn 2%, you are losing 2% in real terms each year.
Can inflation be negative (deflation)?▾
Yes. The UK experienced deflation briefly in 2015 when CPI turned slightly negative. Prolonged deflation can be harmful as it discourages spending (why buy today if things will be cheaper tomorrow?).