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

“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

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

"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

The result will be that the course of our real income, that is, economic satisfaction or enjoyable consumption, will imitate in some degree that of Europe.

From The New York Times Current History of the European War, Vol. 1, January 9, 1915 What Americans Say to Europe by Various