£1,000 in 2006 is worth £1,456.49 today

Value of £1,000 from 2006 to 2020

According to the Office for National Statistics composite price index, today's prices in 2020 are 45.65% higher than average prices since 2006. The British pound experienced an average inflation rate of 2.72% per year during this period, causing the real value of a pound to decrease.

In other words, £1,000 in 2006 is equivalent in purchasing power to about £1,456.49 in 2020, a difference of £456.49 over 14 years.

The 2006 inflation rate was 3.20%. The current year-over-year inflation rate (2019 to 2020) is now 1.50%1. If this number holds, £1,000 today will be equivalent in buying power to £1,015.00 next year.


Inflation from 2006 to 2020
Cumulative price change 45.65%
Average inflation rate 2.72%
Converted amount (£1,000 base) £1,456.49
Price difference (£1,000 base) £456.49
CPI in 2006 781.500
CPI in 2020 1,138.243
Inflation in 2006 3.20%
Inflation in 2020 1.50%

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

Buying power of £1,000 in 2006

This chart shows a calculation of buying power equivalence for £1,000 in 2006 (price index tracking began in 1750).

For example, if you started with £1,000, you would need to end with £1,456.49 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When £1,000 is equivalent to £1,456.49 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 2006 dollars, the chart below shows how £1,000 is worth less over 14 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: 2006-2020
Year Pound Value Inflation Rate
2006 £1,000.00 3.20%
2007 £1,042.87 4.29%
2008 £1,084.45 3.99%
2009 £1,078.69 -0.53%
2010 £1,128.47 4.61%
2011 £1,187.20 5.20%
2012 £1,225.34 3.21%
2013 £1,262.57 3.04%
2014 £1,292.39 2.36%
2015 £1,305.18 0.99%
2016 £1,327.83 1.74%
2017 £1,375.43 3.58%
2018 £1,409.59 2.48%
2019 £1,434.96 1.80%
2020 £1,456.49 1.50%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 8 more rows

This conversion table shows various other 2006 amounts in today's pounds, based on the 45.65% change in prices:

Conversion Table: Value of a pound today
Initial value Equivalent value
£1 pound in 2006 £1.46 pounds today
£5 pounds in 2006 £7.28 pounds today
£10 pounds in 2006 £14.56 pounds today
£50 pounds in 2006 £72.82 pounds today
£100 pounds in 2006 £145.65 pounds today
£500 pounds in 2006 £728.24 pounds today
£1,000 pounds in 2006 £1,456.49 pounds today
£5,000 pounds in 2006 £7,282.43 pounds today
£10,000 pounds in 2006 £14,564.85 pounds today
£50,000 pounds in 2006 £72,824.27 pounds today
£100,000 pounds in 2006 £145,648.54 pounds today
£500,000 pounds in 2006 £728,242.71 pounds today
£1,000,000 pounds in 2006 £1,456,485.43 pounds today

How to Calculate Inflation Rate for £1,000 since 2006

Our calculations use the following inflation rate formula to calculate the change in value between 2006 and today:

CPI today CPI in 2006
×
2006 GBP value
=
Today's value

Then plug in historical CPI values. The U.K. CPI was 781.5 in the year 2006 and 1138.2433607545 in 2020:

1138.2433607545781.5
×
£1,000
=
£1,456.49

£1,000 in 2006 has the same "purchasing power" or "buying power" as £1,456.49 in 2020.

To get the total inflation rate for the 14 years between 2006 and 2020, we use the following formula:

CPI in 2020 - CPI in 2006CPI in 2006
×
100
=
Cumulative inflation rate (14 years)

Plugging in the values to this equation, we get:

1138.2433607545 - 781.5781.5
×
100
=
46%

News headlines from 2006

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

  • Nepali security forces injure 243 pro-democracy protesters.
  • North Kora is alleged to have tested its first nuclear device.

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: “£1,000 in 2006 → 2020 | UK Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Aug. 2020, https://www.officialdata.org/uk/inflation/2006?amount=1000.

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


Ian Webster

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.

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» Read more about inflation and investment.

Inflation from 2006 to 2020
Cumulative price change 45.65%
Average inflation rate 2.72%
Converted amount (£1,000 base) £1,456.49
Price difference (£1,000 base) £456.49
CPI in 2006 781.500
CPI in 2020 1,138.243
Inflation in 2006 3.20%
Inflation in 2020 1.50%