Reaaliarvona

Reaaliarvona is a Finnish term used in economics and finance to denote values that are expressed in real terms, i.e., adjusted for inflation. The word combines reaali 'real' and arvo 'value' with the suffix -na to form an adverbial expression meaning 'as a real value' or 'in real terms.' In written Finnish, reaaliarvona is typically used to describe measurements, prices, or cash flows that have been deflated to a base year's purchasing power.

In practice, reaaliarvona means deflating nominal figures by an appropriate price index. For example, if a price increases from 100 to 110 while the general price level also rises by 10%, the 110 nominal value equals 100 in reaaliarvona. More generally, real values are used to compare economic phenomena over time without inflation bias, such as real incomes, real interest rates, or real GDP.

Common uses include evaluating long-term investments, performing cost-benefit analyses, and presenting macroeconomic time series in constant prices. The term is related to other Finnish financial phrases such as 'nimellinen arvo' (nominal value) and 'reaalinen arvo' (real value), and to the broader concept of 'reaaliset termit' (real terms) in economic reporting.

See also: Real value, Nominal value, Real terms, Inflation, Price index.