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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
When governments use their purchasing power to demand accountability from gun dealers, communities are safer. Kris Brown, Chicago Tribune, 9 Aug. 2026 The oil shortage has pushed up worldwide crude prices, putting pressure on Japanese consumers already strained by the declining purchasing power of their currency. Max Zahn, ABC News, 6 Aug. 2026 When your dividend increases 5% annually in a 3% inflation environment, the purchasing power of the income rises. Catherine Brock, Forbes.com, 29 July 2026 The base pay staying the same as inflation continues to rise means today’s wage floor is at its lowest value in 70 years, with a purchasing power lower than its 1968 peak. Sasha Rogelberg, Fortune, 20 July 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 15 Aug. 2026.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!