real income

American  

[ree-uhl, reel] / ˈri əl, ril /

noun

1. the amount of goods and services that money income will buy.

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real income Cultural  

1. Income measured in terms of the goods and services it can buy.

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Etymology

Origin of real income

First recorded in 1925–30

Example Sentences

“But at the same time, the U.S. consumer is well positioned to absorb the real income hit from higher gas/energy prices, and AI capex trends show no signs of slowing down.”

From Barron's • Apr. 13, 2026

Then there is what economists call the precautionary motive: the money put to one side by those worried about losing their job or suffering a fall in real income as prices surge.

From The Wall Street Journal • Nov. 10, 2025

From 1962 to 2024, males between ages 25 and 44 saw real income growth of around 45%.

From MarketWatch • Oct. 13, 2025

"However, softer earnings growth, higher inflation, tighter fiscal policy, and the lagged impact of past interest rate rises for some mortgagors point to much weaker real income growth moving forward."

From BBC • Sep. 5, 2025

It is that which constitutes the real income of the nation, on which wages and profits alike depend.

From Constructive Imperialism by Milner, Viscount