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

“The energy shock is a really big deal — it will weigh on consumer purchasing power.”

From MarketWatch

Even modest increases in price ripple through the global economy in the form of higher production costs, reduced household purchasing power and tighter financial conditions.

From The Wall Street Journal

Across the world economy, production costs will fall while a persistent drag on growth is removed and household purchasing power is strengthened.

From The Wall Street Journal

One big caveat: Inflation will gradually reduce your purchasing power, so keep some of your money in stocks so it can continue to grow.

From MarketWatch

A sharp reduction in demand as consumers’ purchasing power plunges from higher gas prices would put downward pressure on core prices.

From MarketWatch