purchasing power

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English

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Noun

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purchasing power (uncountable)

  1. (economics) The amount of goods and services that can be bought with a unit of currency.
    The exchange rates do not always reflect true differences in the purchasing power of currencies.
    • 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.
  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.

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