purchasing power

noun

1
: the amount of money that a person or group has available to spend
Inflation decreases consumer purchasing power.
2
: the value of money thought of as how much it can buy
a decline in the purchasing power of the dollar

Examples of purchasing power in a Sentence

Recent Examples on the Web
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At 2% inflation, Smetters noted, wealth loses about 40% of its purchasing power over 25 years. — Nick Lichtenberg, Fortune, 5 Oct. 2026 Once prices move higher, slowing the rate of increase does little to reverse the loss in purchasing power, unless people’s income rises faster than prices. — Sheldon H. Jacobson, Washington Post, 30 Sep. 2026 Ashford said consumers who leave money in low-interest accounts risk losing purchasing power over time because inflation continues to erode the value of their cash. — Joshua Sidorowicz, CBS News, 28 Sep. 2026 As a result, the purchasing power of money kept in a savings account can drop, even as the total dollar amount increases, Ashford said. — Max Zahn, ABC News, 23 Sep. 2026 See All Example Sentences for purchasing power

Cite this Entry

“Purchasing power.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/purchasing%20power. Accessed 9 Oct. 2026.

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