The Myth of Rising Purchasing Power

In recent years, advertisements, media campaigns, and retail promotions have continuously projected the idea that people’s purchasing power is rising. This notion, however, is more myth than reality. While income levels may have seen marginal increases, the actual value of money, when measured against inflation and the rising cost of living, tells a different story. The apparent rise in purchasing power is often a carefully designed illusion, created through marketing gimmicks and aggressive promotional activities.

Essential product industries and large departmental marts are at the forefront of this strategy. By offering discounts, “buy one get one free” deals, and loyalty points, they encourage consumers to purchase more than what is truly necessary. These tactics give shoppers a sense of affordability and abundance, when in fact they are being subtly manipulated to overspend. For instance, many families end up buying bulk packs of everyday items such as cooking oil, rice, or packaged snacks, not because they immediately need them, but because promotional schemes create a false sense of urgency and savings.

The impact of this is twofold. On one hand, individuals believe their capacity to purchase has increased, but on the other, they stretch their budgets by buying excess products. Over time, this results in higher household expenditure without a corresponding rise in financial security. Moreover, the lure of promotions masks the underlying reality that inflation steadily erodes the real value of income.

True purchasing power should mean the ability to comfortably afford essential and aspirational products without financial strain. Instead, what we are witnessing is consumer behavior shaped by retail psychology. The rise in “purchasing power” is less about actual economic improvement and more about clever strategies that make people spend more, even on essential items, during their routine shopping trips.