value of punt today

brucechan

Can anyone tell me how much one irish pound from 1993 would be worth in today's money? For example if someone made a £10k salary, and assuming no increments etc, what would they earn today? If possible quote sources. Thanks Boardies.

ssbob

brucechan wrote: »

Can anyone tell me how much one irish pound from 1993 would be worth in today's money? For example if someone made a £10k salary, and assuming no increments etc, what would they earn today? If possible quote sources. Thanks Boardies.

Assuming an average inflation rate of 3.5% (source www.tradingeconomics.com) and taking into consideration the changeover to the €, then I would extimate it to be approx €24k.

brucechan

Thanks a million ssbob. Appreciated.

blue4ever

eh - €24,000 – I don’t think so – at all!

A euro invested now, for 17 years, at a rate (CPI) of 3.5% would get you €1.67 in the future. That’s a far cry from €24k!

Even the CSO have something close. They estimate that, taking a base of 1996=100(’96 is the only close year on the stats database) and recalculating using the actual annual CPI over that period would be:

Base 1996 = 100 > 2010=141.2

ssbob

blue4ever wrote: »

eh - €24,000 – I don’t think so – at all!

A euro invested now, for 17 years, at a rate (CPI) of 3.5% would get you €1.67 in the future. That’s a far cry from €24k!

Even the CSO have something close. They estimate that, taking a base of 1996=100(’96 is the only close year on the stats database) and recalculating using the actual annual CPI over that period would be:

Base 1996 = 100 > 2010=141.2

Inflation is based on the previous year, for example £10,000 in 1993 would be equivalent to £10,000 * 1.035 for 1994(3.5%) = £10,350 and so on right up the years, but in 2002 you must also include the changeover from Irish Punt TO Euro which is not reflected in the Consumer Price Index, having looked at their figures it would seem appropriate to use a figure of 2.5% for the years 1993-2011 so based on that we would have a figure of €19,500 but again it depends on whether you use inflation/CPI or what sector this £10,000 relates to.

blue4ever

OK - lets put this to bed! See attached, definitive answer. These are the actual CPI figures for each year

ssbob

blue4ever wrote: »

OK - lets put this to bed! See attached, definitive answer. These are the actual CPI figures for each year

So €19,291 is the more correct answer according to the Consumer Price Index.............

Do you mind if I ask one more question Blue4ever:

Is the CPI a definitive measurement of comparing salary inflation over a given period or is the CPI just a measurement of a select amount of goods?

Would actual inflationry rates measure salary more accurately?

blue4ever

Two things:

1) CPI is one of many indices that could be used - I chose this one for simplicity and speed.

2) Perhaps the (my) bewilderment at the original answer lies in the initial question:"Can anyone tell me how much one irish pound from 1993 would be worth in today's money?"

One pound, One - not ten thousand pounds as you seemed to have slipped in.
Where the four extra noughts came from is a mystery and the source of this witty banter - if it could be call that.

Now, so that we don't all die of boredom - let me "answer" this and draw a line under it:

The current day value of One Irish Pound, taking into consideration the conversion to the Euro in 2002 is, using the CPI, €1.92.

Granted its not €24,000 and apologies to anyone gleefully on the way to the post office to withdraw the conformation money and sail the world.

Quod Erat Demonstrandum.

backtothebooks

Interestingly, a pint in 1993 was £1.76 . Today, depending on where you drink of course, it's approx €4.50. That puts the £ at approx €2.56 in todays money:pac:

Of course, that's assuming that you only have drink on your mind, and now that I look at my watch I think it's time for a pint!!

Mozart1986

backtothebooks wrote: »

Interestingly, a pint in 1993 was £1.76 . Today, depending on where you drink of course, it's approx €4.50. That puts the £ at approx €2.56 in todays money:pac:

Of course, that's assuming that you only have drink on your mind, and now that I look at my watch I think it's time for a pint!!

What was the value of your liver in 1993:D?