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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That means households are losing purchasing power because their incomes aren't keeping up with rising prices. Aimee Picchi, CBS News, 28 May 2026 Cash savings and low-interest accounts also lose purchasing power more quickly during high inflationary periods. David Kudla, Forbes.com, 28 May 2026 Three decades of inflation, two decades of fuel-efficiency gains, and one decade of electric vehicles have sent tax revenue’s purchasing power to its lowest point in more than 40 years. Henry Grabar, The Atlantic, 27 May 2026 Spikes in gas prices as well as higher food costs have worsened inflation, which has outpaced the growth in average paychecks, reducing most Americans’ purchasing power. Christopher Rugaber, Fortune, 26 May 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 4 Jun. 2026.

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