real terms
After accounting inflation
Real terms refers to economic values adjusted for inflation, showing actual purchasing power rather than nominal amounts.
If wages rose 5% but inflation was 3%, wages increased only 2% in real terms.
The phrase appears in financial and policy discussions: House prices fell in real terms, The budget increased in real terms for the first time in a decade.
- indexationAutomatic adjustment to benchmarks
- inflationSustained price level increase
- investment returnsProfit from capital deployed
- purchasing powerEconomic spending ability
- cost of livingPrice of basic necessities
bread and butter · living standards · price level · base year · take home pay · pay rise · budget planning · bottom line · cost-benefit analysis · economic growth · deflator · monetary policy · economic forecasting · international trade · CPI · fiscal policy · deflation · deflation
- inflationinflation, CPI, price hikes, hyperinflation, cost-push inflation
real termsnominal
In designation only
nominal value · face value · unadjusted · sticker price · raw numbers
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