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
'die Kaufkraft' and 'die Wirtschaftskraft' sound similar because both have to do with money and the economy. 'Kaufkraft' means purchasing power: how much you can buy with money. When prices rise, purchasing power falls. 'Wirtschaftskraft', on the other hand, describes how strong an economy, a region, or a company is overall. It is about performance, production, work, and success. Learners may confuse the words because both end in '-kraft' and sound economic. For prices, income, and the value of money, 'Kaufkraft' fits; for the strength of a region or company, 'Wirtschaftskraft' fits.
Durch die hohen Preise hat die Kaufkraft vieler Familien abgenommen.
Because of the high prices, the purchasing power of many families has decreased.
Die Wirtschaftskraft der Region ist gewachsen, weil viele neue Firmen gekommen sind.
The region's economic strength has grown because many new companies have arrived.