From ACT Wiki
Income which has been restated to exclude the effects of inflation.
When the rate of inflation exceeds the rate of increase - if any - in incomes, real incomes fall.
Real incomes squeeze
- "Unless wages begin to accelerate in line with the inflation pick-up - unlikely, but not impossible - households will see real incomes squeezed this year. Households could turn to credit and begin to draw down on savings to maintain their preferred level of consumption."
- The Treasurer magazine, March 2017, p17 - Kallum Pickering, senior UK economist, Berenberg Bank.