measure of the amount of goods and services that a dollar can buy in a particular market, as compared with prior periods, assuming always an inflation or a deflation factor and using an index of consumer prices. It might be reported, for instance, that one dollar in 1982-1984 had 50 cents of purchasing power in 2006 because of the erosion caused by inflation.
measure of the amount of goods and services that a dollar can buy in a particular market, as compared with prior periods, assuming always an inflation or a deflation factor and using an index of consumer prices. It might be reported, for instance, that one dollar in 1982 has 67 cents of purchasing power in the late 1990s because of the erosion caused by inflation. Deflation would increase the dollar's purchasing power.
