The Fact
In official economic statistics, “real” means inflation-adjusted. “Nominal” or “current-dollar” values are measured in the prices of the period.
What This Means
A real-income increase means the statistic rose after the chosen inflation adjustment; it does not mean every household can buy more of everything it personally buys.
Sources
- U.S. Bureau of Economic Analysis, Personal Income and Outlays definitions. Accessed October 2, 2026. https://www.bea.gov/resources/methodologies/nipa-handbook