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

“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

"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

This subjective value of money rests on the experience of each individual in making purchases—rests on the prices of consumption goods, determined by the relation between real income and money income.

From The Value of Money by Anderson, Benjamin M.