purchasing power
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purchasing power
The economic value of money, measured by the amount of goods and services you can buy with one unit of currency. High inflation leads to declining purchasing power.
Trotz der Gehaltserhöhung ist die reale Kaufkraft der Angestellten wegen der gestiegenen Preise gesunken.
Despite the salary increase, the employees' real purchasing power has fallen because of rising prices.
The word is made up of 'der Kauf' (purchase, from 'kaufen' — to buy) and 'die Kraft' (power). So it literally describes the 'power' or ability you have to buy things.
Eine hohe Inflation schwächt die Kaufkraft der Bevölkerung.
High inflation weakens the purchasing power of the population.
'Kaufkraft' (purchasing power) is often combined with verbs that describe a change, such as 'steigen' (to rise), 'sinken' (to fall), 'zunehmen' (to increase), or 'abnehmen' (to decrease). You can also 'stärken' (strengthen) or 'schwächen' (weaken) purchasing power.
Durch die Lohnerhöhung soll die Kaufkraft der Arbeitnehmer gestärkt werden.
The wage increase is intended to strengthen workers' purchasing power.
This word is a technical term from economics. You often find it in the news and in discussions about topics such as inflation, salaries, and prices.
Ökonomen analysieren die Entwicklung der Kaufkraft in Europa.
Economists analyze the development of purchasing power in Europe.
economic strength
Both words describe economic strength, but at different levels. „Kaufkraft“ shows how many goods and services people can buy with their money, while „Wirtschaftskraft“ refers to the economic capacity of a region, country, or company. „Kaufkraft“ is appropriate for prices and incomes, while „Wirtschaftskraft“ is more suitable for overall economic performance.
Durch die hohen Preise ist die Kaufkraft der Menschen in der Region gesunken.
People’s purchasing power in the region has fallen because of the high prices.
Die Wirtschaftskraft der Region beruht vor allem auf ihren vielen Unternehmen.
The region’s economic strength is based mainly on its many companies.
