# £2,500 in 2005 is worth £3,829.23 today

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## Value of £2,500 from 2005 to 2021

£2,500 in 2005 is equivalent in purchasing power to about £3,829.23 today, an increase of £1,329.23 over 16 years. The pound had an average inflation rate of 2.70% per year between 2005 and today, producing a cumulative price increase of 53.17%.

This means that today's prices are 1.53 times higher than average prices since 2005, according to the Office for National Statistics composite price index. A pound today only buys 65.29% of what it could buy back then.

The 2005 inflation rate was 2.82%. The current year-over-year inflation rate (2020 to 2021) is now 0.70%1. If this number holds, £2,500 today will be equivalent in buying power to £2,517.50 next year.

 Cumulative price change 53.17% Average inflation rate 2.70% Converted amount (£2,500 base) £3,829.23 Price difference (£2,500 base) £1,329.23 CPI in 2005 757.300 CPI in 2021 1,159.951 Inflation in 2005 2.82% Inflation in 2021 0.70% £2,500 in 2005 £3,829.23 in 2021

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 £3,829.23 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £2,500 is equivalent to £3,829.23 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 16 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: 2005-2021
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 £3,644.27 2.70%
2019 £3,735.38 2.50%
2020 £3,802.61 1.80%
2021 £3,829.23 0.70%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 10 more rows

This conversion table shows various other 2005 amounts in today's pounds, based on the 53.17% change in prices:

Conversion: 2005 pounds today
Initial value Equivalent value
£1 pound in 2005 £1.53 pounds today
£5 pounds in 2005 £7.66 pounds today
£10 pounds in 2005 £15.32 pounds today
£50 pounds in 2005 £76.58 pounds today
£100 pounds in 2005 £153.17 pounds today
£500 pounds in 2005 £765.85 pounds today
£1,000 pounds in 2005 £1,531.69 pounds today
£5,000 pounds in 2005 £7,658.46 pounds today
£10,000 pounds in 2005 £15,316.93 pounds today
£50,000 pounds in 2005 £76,584.64 pounds today
£100,000 pounds in 2005 £153,169.28 pounds today
£500,000 pounds in 2005 £765,846.39 pounds today
£1,000,000 pounds in 2005 £1,531,692.77 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 1159.950938 in 2021:

1159.950938757.3
×
£2,500
=
£3,829.23

£2,500 in 2005 has the same "purchasing power" or "buying power" as £3,829.23 in 2021.

To get the total inflation rate for the 16 years between 2005 and 2021, we use the following formula:

CPI in 2021 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (16 years)

Plugging in the values to this equation, we get:

1159.950938 - 757.3757.3
×
100
=
53%

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 → 2021 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 18 Jun. 2021, https://www.officialdata.org/uk/inflation/2005?amount=2500&endYear=2021.

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