Purchasing Power

The amount of goods and services that can be purchased for a given sum of money. Purchasing power is considered in terms of inflation, which causes purchasing power to reduce over time. If inflation was 3% for ten years, a $3.95 loaf of bread will increase in price to $5.15, and a $100 fixed budget for food would have a purchasing power of just $74.

×
×
August 17th, 2022