economics
purchasing power
The value of money expressed in terms of the goods and services it can buy.
Example
"Inflation eroded her purchasing power — the same $100 bought less each year."
💡 Memory Tip
PURCHASING POWER = the POWER to PURCHASE. Inflation weakens it; deflation strengthens it.
Etymology
Purchasing (the act of buying) + power (ability) — the ability to buy things with money.
Common Misspellings
purchasing poweerpurchaseing powerpuchasing powerpurchasing powr
Related Terms
See Also
real wagesCPI