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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Felt—used for everything from clothing to rugs to insulation for yurts, and already hard to find in Soviet times—gave way to Chinese imports, and then, as purchasing power improved, to brands like Prada and Gucci. — Yulia Denisyuk, Condé Nast Traveler, 14 Oct. 2026 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 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 24 Oct. 2026.

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