purchasing power

American  

noun

1. Also called buying power.  the ability to purchase goods and services.

2. the value of money in terms of what it can buy at a specified time compared to what it could buy at some period established as a base.

   the purchasing power of the dollar.

---

Etymology

Origin of purchasing power

First recorded in 1815–25

Example Sentences

In their 2013 study “Golden Dilemma,” they found that over extremely long periods — a century or more — gold does appear to maintain its purchasing power.

From MarketWatch • Jun. 8, 2026

“In their mind, it’s safe. But it’s really eroding their purchasing power by 3% a year.”

From Barron's • May 30, 2026

But wage-earners—in textile manufacturing and railroading, to pick two examples—gained by the steady appreciation in the purchasing power of their hard-earned money.

From The Wall Street Journal • May 29, 2026

Uncertainty surrounding the duration of the war has led consumers to delay spending, while elevated energy prices continue to dent purchasing power.

From The Wall Street Journal • May 27, 2026

Their increased purchasing power afforded them summer vacations to the beach or the mountains.

From "The Best of Enemies" by Osha Gray Davidson