At Wells Gibson, we believe perspective is one of the most valuable tools in wealth stewardship. Amid inflationary headlines, it’s natural to feel concerned, but when viewed through the lens of history, inflation reveals a story of resilience, growth, and the rewards of long-term investing.
A Story Told in Numbers: 1980 to 2025
Let’s take a step back and look at how far we’ve come:
|
Year |
House Price |
Avg Salary |
Pint of Milk |
FTSE 100 |
Inflation (avg %) |
|
1980 |
£22,676 |
£100/week |
17p |
N/A |
~15% |
|
1990 |
£58,000 |
£270/week |
30p |
~2,400 |
~9% |
|
2000 |
£84,000 |
£400/week |
34p |
~6,200 |
~2.9% |
|
2010 |
£170,000 |
£500/week |
45p |
~5,500 |
~3.3% |
|
2020 |
£240,000 |
£570/week |
50p |
~6,500 |
~0.9% |
|
2025* |
£288,000 |
£640/week |
70p |
~8,200 |
~2.3% |
*Approximate figures based on UK-wide averages.
Despite the rising cost of goods and services, asset growth and salary progression tell a different story — one that affirms the value of long-term financial planning.
Inflation Isn’t the Enemy — Indecision Is
In our Cashflow Is King podcast, we explore the idea that inflation is not something to fear, but something to understand. As Jonathan Gibson often says in his Purposeful Wealth book:
“Purposeful wealth is about more than growing capital — it’s about using your wealth intentionally, with clarity, and for the people and causes that matter most.”
This perspective is vital when we’re tempted to make reactive decisions in the face of economic noise. Inflation, after all, is not new. What matters most is how we respond.
From the 1970s to Today: Lessons in Contrast
- 1970s Peak UK Inflation: 25%
- 2022 Peak: 11.1%
- 2025 Estimate: ~2.3%
While the headlines may feel alarming, today’s inflationary period is fundamentally different — and far less extreme — than in previous decades. Market volatility is temporary, but a thoughtful investment plan endures.
Why Long-Term Investing Remains the Best Defence
- Cash is not king — inflation erodes cash sitting idle.
- Equities, property and real assets tend to outperform over time.
- Diversification and stewardship help protect purchasing power.
The CashFlow Is King episode of our podcast reminds us: holding too much cash may feel safe, but it can quietly diminish your wealth. Purposeful wealth management ensures your assets are actively working for your future.
A Persistent Force – Purposeful Planning Is the Best Response
Source: Humans Under Management
This visual highlights a key truth about inflation: even when its rate slows, the price levels of goods and services generally do not fall, they continue to build over time. The shaded curve illustrates how inflation compounds, reinforcing the importance of long-term investing and disciplined wealth stewardship.
We don’t just help clients manage money; we help you steward it with purpose. Inflation is a constant. But so is opportunity, for those with patience, vision, and a plan rooted in values.
Important Information
This blog is provided by Wells Gibson for informational purposes only and does not constitute financial, investment, or tax advice. Past performance is not a reliable indicator of future results. The figures used are based on publicly available data and are approximate. Before making any financial decisions, please speak to a regulated financial planner or adviser.
Wells Gibson is authorised and regulated by the Financial Conduct Authority. All content reflects our views as of the date of publication and may be subject to change.
