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

Falling mortgage rates have already substantially strengthened purchasing power for homebuyers, whose typical monthly payment fell to the lowest level in two years in early January.

From The Wall Street Journal

Rodriguez said the sum from a $500 million sale conducted by Washington would be used to "stabilize" the foreign exchange market "to protect the income and purchasing power of our workers."

From Barron's

She added that doing so would help "protect the income and purchasing power of our workers."

From Barron's

Inflation erodes the purchasing power of your savings, while interest rates can determine the income you get.

From MarketWatch

Venezuela has been facing an economic crisis, with a sharp rise in food prices and the lack of purchasing power.

From BBC