Reflation factors are used to convert values to current day prices.

The effect of inflation is to erode the purchasing power of the pound such that what could be purchased for £1 in 1967 would be considerably more than could be purchased for £1 in 2007.

E.g. using the reflation factor of 16.12 for 1967, £100 in 1967 would be equivalent to a value of £1,612 in 2007 (i.e. 100 x 14.72 = 1,472).

The reflation factors for 2007 are shown in the table below

Year

Reflation Factor

31/12/1967 31/12/1968 31/12/1969 31/12/1970 31/12/1971 31/12/1972 31/12/1973 31/12/1974 31/12/1975 31/12/1976 31/12/1977 31/12/1978 31/12/1979 31/12/1980 31/12/1981 31/12/1982 31/12/1983 31/12/1984 31/12/1985 31/12/1986 31/12/1987 31/12/1988 31/12/1989 31/12/1990 31/12/1991 31/12/1992 31/12/1993 31/12/1994 31/12/1995 31/12/1996 31/12/1997 31/12/1998 31/12/1999 31/12/2000 31/12/2001 31/12/2002 31/12/2003 31/12/2004 31/12/2005 31/12/2006 31/12/2007

16.12 15.44 14.70 13.75 12.62 11.49 10.14 8.31 6.90 5.82 5.06 4.64 4.09 3.59 3.24 3.06 2.92 2.73 2.58 2.48 2.34 2.19 1.99 1.82 1.72 1.67 1.65 1.61 1.55 1.51 1.44 1.40 1.36 1.31 1.29 1.23 1.19 1.13 1.10 1.05 1.00

Please note that the reflation factors given above are based on fourth quarter data and are rounded so should be used for guidance only. More precise calculations may be made using the quarterly RPI indicies via our Inflation Calculator or by contacting us.