20141204 - Referential GBP based on CPI (2013e)

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# 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. ().

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page revision: 1, last edited: 17 Dec 2014 23:02