There is a connection between purchasing power and the price of items. When the price of products drops, purchasing power increases. When prices are lower, people are able to buy more products with the money they have. If there is a prolonged period of lower prices, this is known as a period of deflation. Consumers tend to like a situation where their money goes farther by being able to buy more products.
On the other hand, when prices rise, purchasing power drops. People are able to buy fewer products with their money. A prolonged period of time of rising prices is known as inflation. Inflation makes it harder for people to buy items because they need more money to buy the things they want. People in debt tend to benefit from an inflationary period because the money they use to pay back their debt may buy less than when they originally got their loan.
There is a connection between the purchasing power of money and the price of items.