Inflation Convertor / Calculator

Definition of inflation – a sustained increase in the general price level.

If you ever ask an old relative about prices, they will invariable start talking about how dear things are these days.

“I remember the days when you get a fish and chip supper, 2 loaves of bread and pint of bitter and still have change from a shilling…”

Inflation means the value of money decreases. £10 might not seem much today but back in 1800 but in 2007, that £10 would be worth £120.

What cost $10 in 1800, would effectively cost $0.85 today.

If you want to have more fun*, checking how the value of money has changed you can use this inflation calculator

* Hours of fun guaranteed.

Some notes about this inflation convertor

• It is based on US prices.
• If you had invested £10 in a reasonably high interest bearing account, the compounded interest would make that £10 much more valuable.
• There have been periods of deflation in the US and UK economy. In particular the Great Depression, saw a period of rising prices and falling value of money. The 1970s was a period of much higher inflation, where the value of money decreased rapidly.
• Also the price of goods do not rise uniformly, some goods rise in price quicker than others.

• Problems in measuring inflation