Understanding and Coping with the Erosion of Financial Stability – Site Title. The term perder poder adquisitivo, or losing purchasing power, describes a slow but impactful shift in an individual’s or household’s ability to maintain their standard of living. As prices for everyday goods and services rise, people find that the same amount of money buys less over time, which can lead to significant financial strain. This article explores the concept of purchasing power, its underlying causes, its effects on people’s lives, and effective strategies to mitigate its impacts.
What is Purchasing Power? Purchasing power refers to the quantity of goods and services that one unit of currency can buy. When purchasing power declines, it means that each dollar, euro, or peso buys fewer items than before. The most common factor behind this decline is inflation, the general increase in the price level of goods and services over time. Key Causes of Losing Purchasing Power There are several drivers of inflation that lead to a loss in purchasing power: Conclusion.