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real income

American  
[ree-uhl, reel] / ˈri əl, ril /

noun

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


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


Etymology

Origin of real income

First recorded in 1925–30


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

In the long term Barr said he is optimistic about the potential of AI, meaning the economy can grow faster, and real income can grow more, without feeding into higher inflation.

From The Wall Street Journal ● Sep. 29, 2026

A study by financial advising company SmartAsset of the 94 largest population centers in the U.S. looked at real income growth in 2024, and the Orange County neighborhoods were in the top 15.

From Los Angeles Times ● Aug. 12, 2026

The moderation in growth from this year’s projected 2% is owing to a slowdown in real income growth and consumer spending.

From MarketWatch ● Jun. 3, 2026

“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

The public economic value of money depends on the money income of the community as a whole, and its real income.

From The Value of Money by Benjamin M. Anderson

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