Purchasing Power Article Index for
Purchasing
Articles about
Purchasing Power
Website Links For
Purchasing
 

Information About

Purchasing Power




If money income stays the same, but the price of most goods go up, the effective purchasing power of that income falls. Falling purchasing power can thus be part of Inflation . However, inflation does not ''always'' imply falling purchasing power of one's income, since one's money income may rise faster than inflation. In inflation, there are some winners ''and'' some losers.

The formula for purchasing power is extremely complex.


SEE ALSO