# £2,500 in 2005 is worth £3,757.57 today

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## Value of £2,500 from 2005 to 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 50.30% higher than average prices since 2005. The British pound experienced an average inflation rate of 2.75% per year during this period, causing the real value of a pound to decrease.

In other words, £2,500 in 2005 is equivalent in purchasing power to about £3,757.57 in 2020, a difference of £1,257.57 over 15 years.

The 2005 inflation rate was 2.82%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%1. If this number holds, £2,500 today will be equivalent in buying power to £2,537.50 next year.

 Cumulative price change 50.30% Average inflation rate 2.75% Converted amount (£2,500 base) £3,757.57 Price difference (£2,500 base) £1,257.57 CPI in 2005 757.300 CPI in 2020 1,138.243 Inflation in 2005 2.82% Inflation in 2020 1.50%

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

## Buying power of £2,500 in 2005

This chart shows a calculation of buying power equivalence for £2,500 in 2005 (price index tracking began in 1750).

For example, if you started with £2,500, you would need to end with £3,757.57 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £2,500 is equivalent to £3,757.57 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 2005 dollars, the chart below shows how £2,500 is worth less over 15 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: 2005-2020
Year Pound Value Inflation Rate
2005 £2,500.00 2.82%
2006 £2,579.89 3.20%
2007 £2,690.48 4.29%
2008 £2,797.77 3.99%
2009 £2,782.91 -0.53%
2010 £2,911.33 4.61%
2011 £3,062.85 5.20%
2012 £3,161.23 3.21%
2013 £3,257.30 3.04%
2014 £3,334.21 2.36%
2015 £3,367.23 0.99%
2016 £3,425.66 1.74%
2017 £3,548.46 3.58%
2018 £3,636.58 2.48%
2019 £3,702.04 1.80%
2020 £3,757.57 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 9 more rows

This conversion table shows various other 2005 amounts in today's pounds, based on the 50.30% change in prices:

Conversion Table: Value of a pound today
Initial value Equivalent value
£1 pound in 2005 £1.50 pounds today
£5 pounds in 2005 £7.52 pounds today
£10 pounds in 2005 £15.03 pounds today
£50 pounds in 2005 £75.15 pounds today
£100 pounds in 2005 £150.30 pounds today
£500 pounds in 2005 £751.51 pounds today
£1,000 pounds in 2005 £1,503.03 pounds today
£5,000 pounds in 2005 £7,515.14 pounds today
£10,000 pounds in 2005 £15,030.28 pounds today
£50,000 pounds in 2005 £75,151.42 pounds today
£100,000 pounds in 2005 £150,302.83 pounds today
£500,000 pounds in 2005 £751,514.17 pounds today
£1,000,000 pounds in 2005 £1,503,028.34 pounds today

## How to Calculate Inflation Rate for £2,500 since 2005

Our calculations use the following inflation rate formula to calculate the change in value between 2005 and today:

CPI today CPI in 2005
×
2005 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 757.3 in the year 2005 and 1138.2433607545 in 2020:

1138.2433607545757.3
×
£2,500
=
£3,757.57

£2,500 in 2005 has the same "purchasing power" or "buying power" as £3,757.57 in 2020.

To get the total inflation rate for the 15 years between 2005 and 2020, we use the following formula:

CPI in 2020 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (15 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 757.3757.3
×
100
=
50%

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

• Egyptian President Hosni Mubarak asks Parliament to amend Article 76 and orders constitutional changes in order to allow multi-candidate presidential elections.
• Syria's 29-year-long military domination of Lebanon ends, after it withdraws the last of its 14,000 troops under international pressure.
• A coordinated bomb attack hits London's public transport system, during the morning rush hour, killing 52 and injuring a further 700 people.
• Angela Merkel becomes first female Chancellor of Germany.

## 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: “£2,500 in 2005 → 2020 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 May. 2020, https://www.officialdata.org/uk/inflation/2005?amount=2500&endYear=2020.