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

See Examples For:

real income

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

From The Wall Street Journal ● Jun. 8, 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

"The subdued labor market, depressed confidence, meager real income growth, and exhaustion of pandemic-era excess savings all are starting to weigh on households," he warned.

From Barron's ● Apr. 30, 2026

"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

Exemption is indexed on inflation, while subsistence, by social psychological causes, rises with inflation and real income.

From Definition & Reality in the General Theory of Political Economy by Colignatus, Thomas