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.

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Etymology

Origin of purchasing power

First recorded in 1815–25

Example Sentences

Many U.S. consumers are already strapped for cash, saving little and feeling the sting of higher prices at the gas pump, as the purchasing power of their paychecks has flagged.

From MarketWatch • May 12, 2026

Even when adjusting for purchasing power differences between the two countries, China’s per capita gross domestic product was less than one-third the size of the U.S.’s in 2024.

From The Wall Street Journal • May 11, 2026

With stronger inflation, investors demand higher yields to make up for the loss in bonds’ purchasing power.

From Barron's • May 5, 2026

Beating inflation is better than losing purchasing power.

From MarketWatch • Apr. 28, 2026

All of my research on Muslim purchasing power indicated that if we created a product that appealed to and satisfied the needs of Muslim consumers, the company would be successful.

From "Proud" by Ibtihaj Muhammad