July saw the launch of the new 10-pound note, featuring Jane Austen on the 200th anniversary of her death in 1817.
The latest price inflation figure now sits at 2.9% - exceeding the government’s 2% target for the sixth month in a row. Our analysis shows how inflation has shrunk the purchasing power of ten pounds since 1817, by nearly 99 per cent.
The new 13-pence note
Today, 10-pounds has a relative purchasing power of only 13 pence, compared to what it could buy in 1817. If the Bank of England had wanted today’s new ten-pound note to have the same purchasing power it enjoyed in 1817, it should be a786-pound note!
Our own recent research found ‘price increases’ to be the number one financial concern amongst adults in the UK.
Inflation silently shrinks the value of cash, and the new 10-pound note allows us to powerfully demonstrate the impact of inflation over time.
In Mansfield Park, Jane Austen wrote “A large income is the best recipe for happiness I ever heard of.” With cautious budgeting and careful investing, inflation need not mess with that recipe.
 Source: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/june2017#the-cpih-inflation-rate-fell-for-the-first-time-since-april-2016-but-remains-higher-than-in-recent-years
 Source: Aviva research: Analysis of the relative purchasing power of one pound, based on official ONS ‘composite price index 1800 to 2016’, published on 18 July 2017 - https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/consumerpriceinflation
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