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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Warren Buffett’s recent annual letter did a fantastic job describing the benefits of investing in great companies as a long-term hedge against inflation to retain purchasing power. Bill Stone, Forbes, 9 Mar. 2025 While in certain markets that became especially overvalued during the pandemic, prices are now softening, the price tag of a typical home in the U.S. is still rising and mortgage rates are projected to remain between 6 and 7 percent throughout 2025, eroding American buyers' purchasing power. Tommy Tuberville, Newsweek, 6 Mar. 2025 Economists are sounding alarms about growing economic uncertainty caused by Mr. Trump tariffs, which could push up prices in the U.S. and undermine the president's pledge to eliminate the inflation that ate into consumers' purchasing power during the Biden administration. Aimee Picchi, CBS News, 3 Mar. 2025 Many central banks have also been stockpiling their gold reserves as their fiat currencies continue to lose purchasing power. Marc Guberti, Sacramento Bee, 26 Feb. 2025 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 14 Mar. 2025.

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