Value of money fell by 98% in Queen’s lifetime

Over the course of the past 90 years, Her Majesty the Queen has undoubtedly received some fantastic, and expensive presents over the years. But getting Her Royal Highness a gift today could cost you significantly more than it would have in 1926 when she was born.

 

According to a report by Lloyds Bank Private Banking, the overall value of money has fallen by 98% in the Queen’s lifetime. Using data from the Office for National Statistics (ONS), the report shows that on average there has been a 4.6% fall every year to the value of money.

Simply put, this means there has been a “fifty-six fold increase in retail prices” meaning that “someone today would need £55.7 million to have the equivalent purchasing power of £1 million in 1926.”

It is not just millionaires who have been affected by the decreasing value of money. If you were to buy the Queen a birthday pint of beer today, it would cost 15,633% more than it would have if you had bought her father one on the day she was born. Private Banking Director at Lloyds Bank Private Banking, Sarah

Private Banking Director at Lloyds Bank Private Banking, Sarah Deaves, commented: “The value of money has fallen substantially since the birth of Queen Elizabeth in 1926 as retail prices and the cost of many everyday items has soared. Such has been the rise in inflation that £1.80 in 1926 would have provided the same spending power as £100 today.”Deaves added: “It is interesting that despite the ups and downs in the stock market, the FTSE All Share Index has outpaced cash over this period. For many people, where appropriate, investing some of their money in the market and getting a wider exposure to the UK economy can help grow the value of their money ahead of inflation.”

Deaves added: “It is interesting that despite the ups and downs in the stock market, the FTSE All Share Index has outpaced cash over this period. For many people, where appropriate, investing some of their money in the market and getting a wider exposure to the UK economy can help grow the value of their money ahead of inflation.”

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