Definition from Wiktionary, the free dictionary
- (economics) The amount of goods and services that can be bought with a unit of currency or by consumers.
2013 June 1, “Towards the end of poverty”, The Economist, volume 407, number 8838, page 11:
- But poverty’s scourge is fiercest below $1.25 (the average of the 15 poorest countries’ own poverty lines, measured in 2005 dollars and adjusted for differences in purchasing power): people below that level live lives that are poor, nasty, brutish and short.
- High interest rates are affecting the purchasing power of homeowners.
- The exchange rates do not always reflect true differences in the purchasing power of currencies.
- (business) The ability of a large collective or company to negotiate more favourable prices and terms than a smaller group or company.
- Large supermarkets usually have better purchasing power than small, local shops.
amount of goods and services that can be purchased with a unit of currency