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

The economist expects households’ real income to deteriorate further as inflation worsens, driven by supply shortages.

From The Wall Street Journal • Jun. 8, 2026

“If Brent crude remains above $100 a barrel for long, the tax-refund buffer will eventually be exhausted, real income growth will compress further, and aggregate demand will slow.”

From Barron's • May 4, 2026

“On Jan. 1, working Americans will reset their withholding levels, and they will have substantial real income increases,” Bessent said.

From MarketWatch • Nov. 21, 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

Allowing for the expected growth in population, this would mean that the real income of the average family in the year 2000 A.D. would be about three times what it is today.

From State of the Union Address by Truman, Harry S.