purchasing power

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.

Word History and Origins

Origin of purchasing power¹

First recorded in 1815–25

Example Sentences

Big increases in gold flows might have a large effect on the global gold supply, which would cause a gold-backed dollar to lose some of its purchasing power.

Read more on Barron's

The dollar’s purchasing power would constantly be in flux, making it impossible for households, businesses, or the government to make rational financial decisions.

Read more on Barron's

This data, which aims to equalize the purchasing power of different currencies by eliminating differences in price levels between countries, shows that the euro and Japanese yen are more than 50% undervalued relative to the dollar.

Read more on MarketWatch

She noted that rising costs keep eroding people’s purchasing power and saving capacity, even with their raises.

Read more on MarketWatch

Surveys show that Italians are most concerned about purchasing power, with wages stagnating.

Read more on Barron's