REAL TERMS CALCULATOR 

This tool uses HM Treasury's Real Terms Deflator tables to convert from Cash Terms to Real Terms. 

Financial Year

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To Year

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From Year Cash Terms Real Terms ({{referenceyear}})
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This means that {{cashTerms}} in {{year}} has the same spending power as {{realTerms.format(2,3)}} in {{referenceyear}}

Calendar Year

Please select the year you are converting to (The Reference Year):

To Year

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From Year Cash Terms Real Terms ({{referenceyearC}})
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This means that {{cashTermsC}} in {{yearC}} has the same spending power as {{realTermsC.format(2,3)}} in {{referenceyearC}}

The Real Terms calculations above are carried out using HMT's deflator table. There are a number of methods for measuring inflation, however when discussing public revenue and expenditure, typically HMT's GDP deflator is used to calculate the real terms equivalent.

HMT's guidance paper states:

The Consumer Prices Index (CPI) and the Retail Prices Index (RPI) are the two main measures of consumer inflation in the UK. The Producer Price Index (PPI) measures the price changes of goods bought and sold by UK manufacturers. The Services Producer Price Index (SPPI) measures the price changes of services provided by UK businesses to other businesses and government.

The GDP deflator is a much broader price index than the CPI, RPI (which only measure consumer prices), or PPI as it reflects the prices of all domestically produced goods and services in the economy. Hence, the GDP deflator also includes the prices of investment goods, government services and exports, and excludes the price of UK imports. The wider coverage of the GDP deflator makes it more appropriate for deflating public expenditure series.


HMT Deflator table - Financial Year
Financial year 2021-22 = 100 per cent change
1955-56 3.705
1956-57 3.937 6.26
1957-58 4.118 4.61
1958-59 4.217 2.42
1959-60 4.238 0.49
1960-61 4.325 2.04
1961-62 4.483 3.66
1962-63 4.624 3.14
1963-64 4.700 1.66
1964-65 4.922 4.71
1965-66 5.187 5.39
1966-67 5.452 5.10
1967-68 5.601 2.73
1968-69 5.894 5.23
1969-70 6.300 6.90
1970-71 6.922 9.87
1971-72 7.445 7.56
1972-73 8.077 8.49
1973-74 8.788 8.79
1974-75 10.571 20.29
1975-76 13.161 24.50
1976-77 14.993 13.92
1977-78 17.056 13.76
1978-79 18.977 11.26
1979-80 22.177 16.86
1980-81 26.417 19.12
1981-82 29.199 10.53
1982-83 31.347 7.36
1983-84 32.844 4.78
1984-85 34.713 5.69
1985-86 36.646 5.57
1986-87 38.171 4.16
1987-88 40.349 5.71
1988-89 43.059 6.72
1989-90 46.466 7.91
1990-91 50.361 8.38
1991-92 53.354 5.94
1992-93 54.817 2.74
1993-94 56.248 2.61
1994-95 57.042 1.41
1995-96 58.801 3.08
1996-97 60.899 3.57
1997-98 60.642 -0.42
1998-99 62.027 2.28
1999-00 62.379 0.57
2000-01 63.619 1.99
2001-02 64.947 2.09
2002-03 66.323 2.12
2003-04 68.010 2.54
2004-05 70.029 2.97
2005-06 72.104 2.96
2006-07 74.243 2.97
2007-08 76.318 2.80
2008-09 78.579 2.96
2009-10 79.814 1.57
2010-11 81.145 1.67
2011-12 82.370 1.51
2012-13 84.031 2.02
2013-14 85.956 2.29
2014-15 86.946 1.15
2015-16 87.486 0.62
2016-17 89.442 2.24
2017-18 90.982 1.72
2018-19 92.758 1.95
2019-20 94.865 2.27
2020-21 100.221 5.65
2021-22 100.000 -0.22
HMT Deflator table - Calendar Year
Calendar year 2021 = 100 per cent change
1955 3.676
1956 3.930 6.93
1957 4.088 4.00
1958 4.237 3.66
1959 4.268 0.73
1960 4.313 1.04
1961 4.476 3.79
1962 4.637 3.60
1963 4.705 1.46
1964 4.873 3.58
1965 5.163 5.94
1966 5.439 5.34
1967 5.599 2.95
1968 5.834 4.20
1969 6.221 6.63
1970 6.819 9.61
1971 7.384 8.28
1972 7.941 7.55
1973 8.645 8.86
1974 10.042 16.15
1975 12.668 26.15
1976 14.627 15.47
1977 16.655 13.87
1978 18.622 11.81
1979 21.312 14.44
1980 25.619 20.21
1981 28.777 12.33
1982 31.080 8.01
1983 32.803 5.54
1984 34.515 5.22
1985 36.375 5.39
1986 38.005 4.48
1987 40.081 5.46
1988 42.528 6.11
1989 45.938 8.02
1990 49.720 8.23
1991 53.087 6.77
1992 54.827 3.28
1993 56.401 2.87
1994 57.233 1.48
1995 58.682 2.53
1996 61.181 4.26
1997 60.972 -0.34
1998 61.941 1.59
1999 62.780 1.36
2000 63.837 1.68
2001 65.019 1.85
2002 66.359 2.06
2003 68.174 2.74
2004 69.928 2.57
2005 72.118 3.13
2006 74.176 2.85
2007 76.250 2.80
2008 78.727 3.25
2009 80.066 1.70
2010 81.166 1.37
2011 82.845 2.07
2012 84.178 1.61
2013 86.060 2.24
2014 87.433 1.60
2015 87.882 0.51
2016 89.548 1.90
2017 91.179 1.82
2018 93.001 2.00
2019 94.876 2.02
2020 99.924 5.32
2021 100.000 0.08

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REFERENCES & FOOTNOTES