purchasing power

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purchasing power (uncountable)

  1. (economics) The amount of goods and services that can be bought with a unit of currency.
    • 2013 June 1, “Towards the end of poverty”, in The Economist[1], 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.
    The exchange rates do not always reflect true differences in the purchasing power of currencies.
  2. (economics) The amount of goods and services that can be bought by consumers; available income; spending power.
    High interest rates are affecting the purchasing power of homeowners.
  3. (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.