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GuardianGovernment borrowing costs hit multi-year highs as markets fear inflation, and oil and gas prices rise – as it happened·SCMPWill Russia’s plan for overland oil route be ‘game changer’ for India’s energy security?·SCMPEU plans most far-reaching sanctions on Russia in coming months·NYTWorker Pay Isn’t Keeping Up With Inflation Once Again·NYTJuly Retail Sales Notch Biggest Drop in Over a Year·NYTAmazon and Alphabet’s Profits Reveal Circular Nature of A.I. Boom·BBCUS says dozens of countries helped China dodge Trump's tariffs·Bank of Japan(Research Paper) What Prevents Productivity Gains from Translating into Wages: Lessons from Japan's Deflationary Period·GuardianGovernment borrowing costs hit multi-year highs as markets fear inflation, and oil and gas prices rise – as it happened·SCMPWill Russia’s plan for overland oil route be ‘game changer’ for India’s energy security?·SCMPEU plans most far-reaching sanctions on Russia in coming months·NYTWorker Pay Isn’t Keeping Up With Inflation Once Again·NYTJuly Retail Sales Notch Biggest Drop in Over a Year·NYTAmazon and Alphabet’s Profits Reveal Circular Nature of A.I. Boom·BBCUS says dozens of countries helped China dodge Trump's tariffs·Bank of Japan(Research Paper) What Prevents Productivity Gains from Translating into Wages: Lessons from Japan's Deflationary Period·
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£

British Pound

GBP · United Kingdom

33
Moderate
Risk
Historical Scores
304049Jul 2021Jul 2025Aug 2026
What does this mean for you?

The British Pound is in decent shape overall, scoring 33 out of 100. There are some areas to watch, but no immediate danger. Your money is holding its value reasonably well compared to most currencies.

You only need about 5.4%/yr to stay ahead. A basic savings account is enough. Calculator ↓

Inflation
3.9%
Debt / GDP
130.7%
GDP Growth
1.4%
FX Volatility
5.1
Governance
1.6
Reserves
1.4 mo
Analysis
What's working well
Prices are stable — your money holds its value well
Strong institutions and rule of law
Banking system is in good shape
What to watch out for
Government owes a lot (131% of what the country produces) — may need to print more money
Full United Kingdom analysis →

Savings Impact Calculator

£
Holding cash in GBP3.9% inflation
£827−£173 (17% purchasing power lost)
Your £1,000 buys 17% less in 5 years
What if you invested £1,000 instead? (5yr, in GBP terms)
USD-denominated assets gain an additional ~0.9%/yr from expected GBP depreciation vs USD
Hold USD Cash
£899
−£101
-2.1%/yr net in GBP
S&P 500
£1676
+£676
range: £769–£3289
10% USD return + 0.9% FX · ±16% vol
Gold
£1530
+£530
range: £441–£4143
8% USD return + 0.9% FX · ±24% vol
Bitcoin
£3161
+£2161
range: £192–£18.8k
25% USD return + 0.9% FX · ±54% vol

All values in GBP. USD-denominated assets (S&P 500, Gold, Bitcoin) include an estimated FX gain of ~0.9%/yr based on the inflation differential between United Kingdom (3.9%) and the US (~3%). This uses purchasing power parity as a long-run approximation — actual FX movements can differ significantly in the short term. S&P 500 based on 1957-2024, Gold on 2000-2024, Bitcoin on 2015-2024. Past performance does not guarantee future results. Not financial advice.

Holding other assets too? Calculate your full portfolio risk →
This score is based on our 12-factor risk model. Think inflation or debt should matter more? Build your own model with custom weights and see how GBP ranks differently.
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