Real vs. nominal
Nominal values are in current money; real values are adjusted for inflation.
2 min read · Reviewed September 2026
In plain words
Nominal means unadjusted — the raw numbers in today's money. Real means adjusted for inflation, so you can compare across time. A salary that rose 5% when inflation was 8% rose nominally but fell in real terms.
Frequently asked questions
What is the difference between real and nominal GDP?
Nominal GDP measures the value of output in current prices. Real GDP adjusts for inflation, showing how much the actual volume of goods and services changed. Real GDP is used for measuring genuine economic growth.