In 1939 something cost £38.  What is that value today?

Hi gorilla:

Thanks for the interesting question. Since you use the "£" symbol, I
will assume you are in the UK.

Finding the relative purchasing power in 2003-money of £38 in
1939-money is a simple matter of making a "Retail Price Index" (RPI)
comparison. The Retail Price Index is a measure of how much a typical
"basket" of retail goods cost at any one time.

The following table provides the RPI for each month 1915 and 2001

http://www.crowsnest.co.uk/north/rpi.htm

while this one picks up the more recent data until the end of 2002

http://www.devon.gov.uk/dris/economic/retprice.html

To calculate the value of £38 in 1939-money today, you just set up a
simple ratio calculation. Let X represent the value today.


    RPI-DEC2002         X
    -----------  =  ---------
    RPI-JAN1939     £-JAN1939


      178.5             X
    ----------   =   -------
       5.6             £38  


             X   =   £1211.25


So, £38 in 1939 had the same purchasing power as £1211.25 had at the
end of 2002. If you wanted to adjust for the 6 weeks since the end of
2002, you could add a couple of pounds.


Hope this helps!

websearcher-ga


Search Strategy (on Google)

"Retail Price Index"
"Retail Price Index" 1938 site:.uk

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Request for Answer Clarification by gorilla1-ga on 10 Feb 2003 01:18 PST

Many Thanks -- but what about inflation?

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Clarification of Answer by websearcher-ga on 10 Feb 2003 04:56 PST

Hi gorilla:

The Retail Price Index *is* what measures inflation - that's what it's
all about. :-)

(Which explains why the numbers get higher as time goes by...) 

Hope this helps.

websearcher-ga

According to http://eh.net/hmit/ppowerbp/?action=before70&pounds=38&shillings=&pence=&year=1939
the answer is £1916

If you use the offbeat analogy of "how many toothbrushes could that
have bought", according to http://www.westallswar.org.uk/01_1941.html
the answers is £475

You probably could have bought a flat (an apartment) in the UK for
£38. Today, (depending on area), you will be lucky to find one for
£38,000.