£2,000 in 1945 is worth £86,888.81 today

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Value of £2,000 from 1945 to 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 4,244.44% higher than average prices since 1945. The British pound experienced an average inflation rate of 5.16% per year during this period, causing the real value of a pound to decrease.

In other words, £2,000 in 1945 is equivalent in purchasing power to about £86,888.81 in 2020, a difference of £84,888.81 over 75 years.

The 1945 inflation rate was 2.75%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%1. If this number holds, £2,000 today will be equivalent in buying power to £2,030.00 next year.

 Cumulative price change 4,244.44% Average inflation rate 5.16% Converted amount (£2,000 base) £86,888.81 Price difference (£2,000 base) £84,888.81 CPI in 1945 26.200 CPI in 2020 1,138.243 Inflation in 1945 2.75% Inflation in 2020 1.50%

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

Buying power of £2,000 in 1945

This chart shows a calculation of buying power equivalence for £2,000 in 1945 (price index tracking began in 1750).

For example, if you started with £2,000, you would need to end with £86,888.81 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £2,000 is equivalent to £86,888.81 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 1945 dollars, the chart below shows how £2,000 is worth less over 75 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: 1945-2020
Year Pound Value Inflation Rate
1945 £2,000.00 2.75%
1946 £2,061.07 3.05%
1947 £2,206.11 7.04%
1948 £2,374.05 7.61%
1949 £2,442.75 2.89%
1950 £2,519.08 3.13%
1951 £2,748.09 9.09%
1952 £3,000.00 9.17%
1953 £3,091.60 3.05%
1954 £3,152.67 1.98%
1955 £3,290.08 4.36%
1956 £3,458.02 5.10%
1957 £3,580.15 3.53%
1958 £3,694.66 3.20%
1959 £3,709.92 0.41%
1960 £3,748.09 1.03%
1961 £3,877.86 3.46%
1962 £4,045.80 4.33%
1963 £4,122.14 1.89%
1964 £4,259.54 3.33%
1965 £4,458.02 4.66%
1966 £4,633.59 3.94%
1967 £4,755.73 2.64%
1968 £4,977.10 4.65%
1969 £5,244.27 5.37%
1970 £5,580.15 6.40%
1971 £6,106.87 9.44%
1972 £6,541.98 7.13%
1973 £7,137.40 9.10%
1974 £8,282.44 16.04%
1975 £10,290.08 24.24%
1976 £11,992.37 16.54%
1977 £13,893.13 15.85%
1978 £15,045.80 8.30%
1979 £17,061.07 13.39%
1980 £20,129.77 17.99%
1981 £22,519.08 11.87%
1982 £24,458.02 8.61%
1983 £25,580.15 4.59%
1984 £26,854.96 4.98%
1985 £28,488.55 6.08%
1986 £29,458.02 3.40%
1987 £30,687.02 4.17%
1988 £32,190.84 4.90%
1989 £34,694.66 7.78%
1990 £37,977.10 9.46%
1991 £40,206.11 5.87%
1992 £41,709.92 3.74%
1993 £42,374.05 1.59%
1994 £43,396.95 2.41%
1995 £44,900.76 3.47%
1996 £45,984.73 2.41%
1997 £47,427.48 3.14%
1998 £49,053.44 3.43%
1999 £49,809.16 1.54%
2000 £51,282.44 2.96%
2001 £52,190.84 1.77%
2002 £53,061.07 1.67%
2003 £54,595.42 2.89%
2004 £56,221.37 2.98%
2005 £57,809.16 2.82%
2006 £59,656.49 3.20%
2007 £62,213.74 4.29%
2008 £64,694.66 3.99%
2009 £64,351.15 -0.53%
2010 £67,320.61 4.61%
2011 £70,824.43 5.20%
2012 £73,099.24 3.21%
2013 £75,320.61 3.04%
2014 £77,099.24 2.36%
2015 £77,862.60 0.99%
2016 £79,213.74 1.74%
2017 £82,053.44 3.58%
2018 £84,091.10 2.48%
2019 £85,604.74 1.80%
2020 £86,888.81 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 69 more rows

This conversion table shows various other 1945 amounts in today's pounds, based on the 4,244.44% change in prices:

Conversion Table: Value of a pound today
Initial value Equivalent value
£1 pound in 1945 £43.44 pounds today
£5 pounds in 1945 £217.22 pounds today
£10 pounds in 1945 £434.44 pounds today
£50 pounds in 1945 £2,172.22 pounds today
£100 pounds in 1945 £4,344.44 pounds today
£500 pounds in 1945 £21,722.20 pounds today
£1,000 pounds in 1945 £43,444.40 pounds today
£5,000 pounds in 1945 £217,222.02 pounds today
£10,000 pounds in 1945 £434,444.03 pounds today
£50,000 pounds in 1945 £2,172,220.15 pounds today
£100,000 pounds in 1945 £4,344,440.31 pounds today
£500,000 pounds in 1945 £21,722,201.54 pounds today
£1,000,000 pounds in 1945 £43,444,403.08 pounds today

How to Calculate Inflation Rate for £2,000 since 1945

Our calculations use the following inflation rate formula to calculate the change in value between 1945 and today:

CPI today CPI in 1945
×
1945 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 26.2 in the year 1945 and 1138.2433607545 in 2020:

1138.243360754526.2
×
£2,000
=
£86,888.81

£2,000 in 1945 has the same "purchasing power" or "buying power" as £86,888.81 in 2020.

To get the total inflation rate for the 75 years between 1945 and 2020, we use the following formula:

CPI in 2020 - CPI in 1945CPI in 1945
×
100
=
Cumulative inflation rate (75 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 26.226.2
×
100
=
4,244%

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

• The USSR captures Budapest from Germany in a battle that kills 159,000 people.
• The US Fleet captures Iwo Jima.
• 1,500 US Navy ships bomb Okinawa: the operation is believed to be the largest of World War II
• Iwo Jima is occupied by America, costing 6,000 American lives and a further 18,000 Japanese lives.
• Buchenwald, the first Nazi concentration camp, is liberated.

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: “£2,000 in 1945 → 2020 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 May. 2020, https://www.officialdata.org/uk/inflation/1945?amount=2000.