Price inflation: 1985 vs 2025 📈

The average full-time annual wage in 1985 was £6,867. In 2025, that figure is £39,039. That’s a rise of 468.5% (or, an average annual rise of 4.44%).

Of course, prices of goods and services have also risen over that time, so… it all evens out when you take inflation into account, right?

Well, actually, no. It really does depend on what you’re buying.

There are some items that have risen in price far more steeply than wages have kept up with. By looking at how much of an item the UK average wage could buy of in 1985 and comparing that with 2025’s average wage, you can see some of the worst offenders:

All of the items above are more expensive in real terms than they used to be, because it now takes a greater chunk of your money to buy them.

Some items have actually become cheaper in real terms as the prices of the goods have risen more slowly than wages have.

You can now get more of the following items in your basket for a smaller proportion of your wages.

For some goods, it’s the past few years where much of the inflation has taken place, as this table shows:

Pint of beer 1985

Pint of beer 2025

West Country Butter (250g) 1985

West Country Butter (250g) 2025

10 Bird’s Eye Cod Fish Fingers 2025 – Local Tesco

Fish n chips 1985

Fish n chips 2025 – Local fish and chip shop, Nottingham

First-class stamps 1985

First-class stamps 2025

1 month’s rent in London 1985

1 month’s rent in London 2025

1 month’s rent outside London 1985

1 month’s rent outside London 2025

Average house price 1985

Average house price 2025

2015 Freddo price

2025 Freddo price

Pint of beer 2015

Pint of milk 2015

1kg granulated sugar 2015

Cheddar cheese 2015

Fish fingers 2015

Fish and chips 2015

1 month’s rent in London 2015

1 month’s rent outside London 2015