Explore how £1,000 went from buying mansions to handbags because of inflation, in this cheeky guide to your dwindling fortune.
Ah, inflation! That sneaky financial gremlin that eats away at the value of our hard-earned cash like a box of chocolates left unattended. It’s the reason your grandparents could buy a house with what you spent on your latest smartphone and still have change left over for a lavish dinner. But what exactly is it, and how badly is it affecting us?
The Basics of Inflation
Why, you ask, does our money change in value? Let us set the scene.
Imagine you’re at a concert where the price of water starts at a reasonable £1 per bottle. But here’s the catch. The venue is hotter than a sauna, and the crowd’s thirst grows insatiable. Suddenly, that humble bottle of water is as coveted as the last lifeboat on the Titanic, and the price skyrockets. That is supply and demand doing its dark tango.
On the basis of an average historical inflation rate of about 3.22% annually, here’s how much £1,000 in each decade, going back to the 1910s, would be equivalent to in today’s money.
2020s: Approximately £1,099.74
This Loweve Anagram-embroidered cropped denim jacket for £1,100.00.
2010s: Approximately £1,509.84
This Christian Louboutin Kate botta 85 calf black boots for £1,490.00.
2000s: Approximately £2,072.85
This Alexander McQueen Seal small leather shoulder bag for £2,100.00.
1990s: Approximately £2,845.82
This Ferragamo Coralli rhinestone-embellished leather clutch bag for £2,780.00.
1980s: Approximately £3,907.02
This Bottega Jodie mini leather top-handle bag for £3,670.00.
1970s: Approximately £5,363.94
This Bvulgari Serpenti suede tote bag for £5,100.00.
1960s: Approximately £7,364.15
This Alexander McQueen Fringed-hem peak-lapel leather coat for £6,990.00.
1950s: Approximately £10,110.24
This Chopard 278602-3002 Happy Sport Oval stainless steel and diamond watch for £9,660.00.
1940s: Approximately £13,880.33
This Boucheron Jack de Boucheron single 18ct yellow-gold and 1.76ct round diamond bracelet for £13,800.00.
1930s: Approximately £19,056.30
This Bvulgari B.zero1 18kt pink-gold and pavé diamond bangle bracelet for £19,100.00.
1920s: Approximately £26,162.37
This Cartier LOVE 18ct yellow-gold and 117 brilliant-cut diamond bracelet for £26,100.00.
1910s: Approximately £35,918.28
This Cartier CRWGSA0042 Santos Cartier Large Model 18ct yellow-gold and leather watch for £34,600.00.