Dictionary

noun

Definitions

1. The amount of goods and services that can be bought with a unit of currency.

   Example: The exchange rates do not always reflect true differences in the purchasing power of currencies.

2. The amount of goods and services that can be bought by consumers; available income; spending power.

   Example: High interest rates are affecting the purchasing power of homeowners.

3. The ability of a large collective or company to negotiate more favourable prices and terms than a smaller group or company.

   Example: Large supermarkets usually have better purchasing power than small, local shops.