real price

real price

the PRICE of a PRODUCT or FINANCIAL SECURITY measured in constant price terms to make allowance for the effects of INFLATION. For example, although the price of a product increases from, say, £1 to £1.10 (a 10% increase) between 2002 and 2004, if during this period the general price level had risen by 20%, then the real price of the product would have fallen. Contrast NOMINAL PRICE. See PRICE INDEX.