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

While this approach simplifies planning, it can miss important differences in how inflation actually affects retiree budgets and may understate the real pressure on long-term purchasing power.

From MarketWatch • May 13, 2026

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

"Both give relatively positive signals about the health of discretionary spending, despite the hit to consumers' purchasing power from higher gasoline prices," said Thomas Ryan, North America economist at Capital Economics.

From BBC • May 8, 2026

How much consumers can afford—and where their discretionary purchasing power goes afterward—will be a question for retailers this earnings season.

From Barron's • May 7, 2026

The day he learned that he was terminally ill was the day he lost interest in his purchasing power.

From "Tuesdays with Morrie" by Mitch Albom