# £0.06 in 1906 is worth £7.34 today

£

## Value of £0.06 from 1906 to 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 12,139.18% higher than average prices since 1906. The British pound experienced an average inflation rate of 4.31% per year during this period, causing the real value of a pound to decrease.

In other words, £0.06 in 1906 is equivalent in purchasing power to about £7.34 in 2020, a difference of £7.28 over 114 years.

The 1906 inflation rate was 0.00%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%1. If this number holds, the rate of inflation is so negligible that £0.06 today will roughly maintain its value.

 Cumulative price change 12,139.18% Average inflation rate 4.31% Converted amount (£0.06 base) £7.34 Price difference (£0.06 base) £7.28 CPI in 1906 9.300 CPI in 2020 1,138.243 Inflation in 1906 0.00% Inflation in 2020 1.50%

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

## Buying power of £0.06 in 1906

This chart shows a calculation of buying power equivalence for £0.06 in 1906 (price index tracking began in 1750).

For example, if you started with £0.06, you would need to end with £7.34 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £0.06 is equivalent to £7.34 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 1906 dollars, the chart below shows how £0.06 is worth less over 114 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: 1906-2020
Year Pound Value Inflation Rate
1906 £0.06 -
1907 £0.06 1.08%
1908 £0.06 0.00%
1909 £0.06 1.06%
1910 £0.06 1.05%
1911 £0.06 0.00%
1912 £0.06 3.13%
1913 £0.06 -1.01%
1914 £0.06 0.00%
1915 £0.07 12.24%
1916 £0.08 18.18%
1917 £0.11 25.38%
1918 £0.13 22.09%
1919 £0.14 10.05%
1920 £0.16 15.53%
1921 £0.15 -8.70%
1922 £0.13 -13.85%
1923 £0.12 -6.03%
1924 £0.12 -0.53%
1925 £0.12 0.00%
1926 £0.12 -0.54%
1927 £0.12 -2.70%
1928 £0.12 0.00%
1929 £0.11 -1.11%
1930 £0.11 -2.81%
1931 £0.11 -4.05%
1932 £0.10 -2.41%
1933 £0.10 -2.47%
1934 £0.10 0.00%
1935 £0.10 0.63%
1936 £0.10 0.63%
1937 £0.11 3.75%
1938 £0.11 1.20%
1939 £0.11 2.98%
1940 £0.13 16.76%
1941 £0.14 10.89%
1942 £0.15 7.14%
1943 £0.16 3.33%
1944 £0.16 2.82%
1945 £0.17 2.75%
1946 £0.17 3.05%
1947 £0.19 7.04%
1948 £0.20 7.61%
1949 £0.21 2.89%
1950 £0.21 3.13%
1951 £0.23 9.09%
1952 £0.25 9.17%
1953 £0.26 3.05%
1954 £0.27 1.98%
1955 £0.28 4.36%
1956 £0.29 5.10%
1957 £0.30 3.53%
1958 £0.31 3.20%
1959 £0.31 0.41%
1960 £0.32 1.03%
1961 £0.33 3.46%
1962 £0.34 4.33%
1963 £0.35 1.89%
1964 £0.36 3.33%
1965 £0.38 4.66%
1966 £0.39 3.94%
1967 £0.40 2.64%
1968 £0.42 4.65%
1969 £0.44 5.37%
1970 £0.47 6.40%
1971 £0.52 9.44%
1972 £0.55 7.13%
1973 £0.60 9.10%
1974 £0.70 16.04%
1975 £0.87 24.24%
1976 £1.01 16.54%
1977 £1.17 15.85%
1978 £1.27 8.30%
1979 £1.44 13.39%
1980 £1.70 17.99%
1981 £1.90 11.87%
1982 £2.07 8.61%
1983 £2.16 4.59%
1984 £2.27 4.98%
1985 £2.41 6.08%
1986 £2.49 3.40%
1987 £2.59 4.17%
1988 £2.72 4.90%
1989 £2.93 7.78%
1990 £3.21 9.46%
1991 £3.40 5.87%
1992 £3.53 3.74%
1993 £3.58 1.59%
1994 £3.67 2.41%
1995 £3.79 3.47%
1996 £3.89 2.41%
1997 £4.01 3.14%
1998 £4.15 3.43%
1999 £4.21 1.54%
2000 £4.33 2.96%
2001 £4.41 1.77%
2002 £4.48 1.67%
2003 £4.61 2.89%
2004 £4.75 2.98%
2005 £4.89 2.82%
2006 £5.04 3.20%
2007 £5.26 4.29%
2008 £5.47 3.99%
2009 £5.44 -0.53%
2010 £5.69 4.61%
2011 £5.99 5.20%
2012 £6.18 3.21%
2013 £6.37 3.04%
2014 £6.52 2.36%
2015 £6.58 0.99%
2016 £6.69 1.74%
2017 £6.93 3.58%
2018 £7.11 2.48%
2019 £7.23 1.80%
2020 £7.34 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 108 more rows

This conversion table shows various other 1906 amounts in today's pounds, based on the 12,139.18% change in prices:

Conversion Table: Value of a pound today
Initial value Equivalent value
£1 pound in 1906 £122.39 pounds today
£5 pounds in 1906 £611.96 pounds today
£10 pounds in 1906 £1,223.92 pounds today
£50 pounds in 1906 £6,119.59 pounds today
£100 pounds in 1906 £12,239.18 pounds today
£500 pounds in 1906 £61,195.88 pounds today
£1,000 pounds in 1906 £122,391.76 pounds today
£5,000 pounds in 1906 £611,958.80 pounds today
£10,000 pounds in 1906 £1,223,917.59 pounds today
£50,000 pounds in 1906 £6,119,587.96 pounds today
£100,000 pounds in 1906 £12,239,175.92 pounds today
£500,000 pounds in 1906 £61,195,879.61 pounds today
£1,000,000 pounds in 1906 £122,391,759.22 pounds today

## How to Calculate Inflation Rate for £0.06 since 1906

Our calculations use the following inflation rate formula to calculate the change in value between 1906 and today:

CPI today CPI in 1906
×
1906 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 9.3 in the year 1906 and 1138.2433607545 in 2020:

1138.24336075459.3
×
£0.06
=
£7.34

£0.06 in 1906 has the same "purchasing power" or "buying power" as £7.34 in 2020.

To get the total inflation rate for the 114 years between 1906 and 2020, we use the following formula:

CPI in 2020 - CPI in 1906CPI in 1906
×
100
=
Cumulative inflation rate (114 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 9.39.3
×
100
=
12,139%

## News headlines from 1906

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

• The British battleship HMS Dreadnought is launched. It is known for its revolutionary design.
• Roald Amundsen, a Norwegian explorer, discovers the ‘Magnetic South Pole’.
• Worldwide standard for help is established as 'SOS' by the International Radiotelegraph Conference in Berlin.
• The opium trade is banned by China.

## 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: “£0.06 in 1906 → 2020 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 Sep. 2020, https://www.officialdata.org/uk/inflation/1906?amount=0.06.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

#### 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.

 Cumulative price change 12,139.18% Average inflation rate 4.31% Converted amount (£0.06 base) £7.34 Price difference (£0.06 base) £7.28 CPI in 1906 9.300 CPI in 2020 1,138.243 Inflation in 1906 0.00% Inflation in 2020 1.50%