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purchasing power
This term describes the real value of money in terms of the volume of goods or services that one unit of currency can buy. It is a central concept in economics used to illustrate how inflation diminishes the actual value of a currency, even if the nominal amount of money remains the same.
In professional and academic contexts, it is often contrasted with nominal income. While nominal income refers to the face value of earnings, purchasing power reflects the actual standard of living. It is typically used in formal reports, financial news, and economic analyses rather than in casual daily conversation.
Meanings
Examples
I have no purchasing power.
Their purchasing power is high.
Their purchasing power is high.
Purchasing power is important.
Purchasing power is important.
Students often lack the purchasing power for luxury items.
Travelers should check the local purchasing power before visiting.
The king had immense purchasing power in the realm.
Hyperinflation completely wiped out the citizens purchasing power.
Hyperinflation completely wiped out the citizens purchasing power.
We must analyze the target demographic purchasing power first.
The report discusses how currency devaluation affects purchasing power.
The report discusses how currency devaluation affects purchasing power.