20141204 - Referential GBP based on CPI (2013e)
| [Technology] | [<Normal page] [PEREZGONZALEZ Jose D (2013). Referential GBP based on CPI (2013e)3. Knowledge (ISSN 2324-1624), 2014, pages 10-11.] [DOI] |
Referential GBP
Referential British pound (rGBP, r£) is the real value of the pound (GBP, £) back in 2010, which is used here as referential currency for better understanding the value of money overtime. The referential pound is based on the average annual CPI for Great Britain (Rate Inflation, 20132). It is calculated by updating the nominal value of the pound with the appropriate multiplier. The formula for transforming GBP into rGBP follows, while Table 1 provides the correct multiplier (an inflator/deflator multiplier) for the formula.
| Formula |
|---|
| rGBP = nominal GBP + (nominal GBP * multiplier) |
| Table 1. CPI for Great Britain and rGBP multiplier | ||||
|---|---|---|---|---|
| Year | CPI A.Avg | Base 2010 | multiplier | |
| 1988 | 63.5 | 114.5 | 0.8031 | |
| 1989 | 66.8 | 114.5 | 0.7141 | |
| 1990 | 71.5 | 114.5 | 0.6014 | |
| 1991 | 76.8 | 114.5 | 0.4909 | |
| 1992 | 80.1 | 114.5 | 0.4295 | |
| 1993 | 82.1 | 114.5 | 0.3946 | |
| 1994 | 83.8 | 114.5 | 0.3663 | |
| 1995 | 86.0 | 114.5 | 0.3314 | |
| 1996 | 88.1 | 114.5 | 0.2997 | |
| 1997 | 89.7 | 114.5 | 0.2765 | |
| 1998 | 91.1 | 114.5 | 0.2569 | |
| 1999 | 92.3 | 114.5 | 0.2405 | |
| 2000 | 93.1 | 114.5 | 0.2299 | |
| 2001 | 94.2 | 114.5 | 0.2155 | |
| 2002 | 95.4 | 114.5 | 0.2002 | |
| 2003 | 96.7 | 114.5 | 0.1841 | |
| 2004 | 98.0 | 114.5 | 0.1684 | |
| 2005 | 100.0 | 114.5 | 0.1450 | |
| 2006 | 102.3 | 114.5 | 0.1193 | |
| 2007 | 104.7 | 114.5 | 0.0936 | |
| 2008 | 108.5 | 114.5 | 0.0553 | |
| 2009 | 110.8 | 114.5 | 0.0334 | |
| 2010 | 114.5 | 114.5 | 0.0000 | |
| 2011 | 119.6 | 114.5 | -0.0426 | |
| 2012 | 123.0 | 114.5 | -0.0691 | |
| 2013 | 126.1 | 114.5 | -0.0920 | |
| 2014* | 129.9 | 114.5 | -0.1184 | |
| 2015* | 133.8 | 114.5 | -0.1441 | |
| 2016* | 137.8 | 114.5 | -0.1690 | |
| 2017* | 141.9 | 114.5 | -0.1932 | |
| 2018* | 146.2 | 114.5 | -0.2167 | |
| 2019* | 150.6 | 114.5 | -0.2396 | |
| 2020* | 155.1 | 114.5 | -0.2617 | |
| 2021* | 159.7 | 114.5 | -0.2832 | |
| (*Assuming a 3% accumulated inflation rate.) | ||||
References
1. PEREZGONZALEZ Jose D (2012). Referential GBP based on CPI (2012e). Knowledge (ISSN 2324-1624), 2013, pages 97-98, doi:10.6084/m9.figshare.709023
2. RATE INFLATION (2013). United Kingdom Consumer Price Index (CPI) history. Retrieved from Rate Inflation on 12 December 2014.
+++ Footnotes +++
3. The 2013 edition updates the 2012 edition1 with the official CPI values for that year.
Want to know more?
- British pound inflation calculator
- Handy online calculator for estimating the value of the pound over time. Safalra's historical UK inflation price conversion calculator includes inflation for 2010; thus, using it as your base year, you can estimate historical referential British pounds (rGBP, r£) with easy.
- MeasuringWorth
- A handy website to learn about different inflation indexes and calculate the value of money according to those indexes.
- WikiofScience - Referential currency (list of topics)
- This WikiofScience page provides a list of topics related to referential currencies.
Author
Jose D PEREZGONZALEZ (2014). Massey University, Turitea Campus, Private Bag 11-222, Palmerston North 4442, New Zealand. (JDPerezgonzalez).
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page revision: 1, last edited: 17 Dec 2014 23:02
