real income

[ree-uhl, reel]

noun

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

real income

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

Word History and Origins

Origin of real income¹

First recorded in 1925–30

Example Sentences

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

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“Then you look on the other side, and the labor market has weakened a lot. Real income growth for lower middle-income consumers has slowed and is close to zero on average. Auto loan rates are high. Mortgage rates are high,” he said.

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That pushes real income lower as wage growth slows.

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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.

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Real income has risen for people across all age brackets and marital statuses, and as more women entered the workforce, men did not lose out.

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