An inferior good is a type of good for which the demand moves in the opposite direction of the income of the consumer. This implies that as the income of the consumer increases, the demand for an inferior good falls, and as the income decreases, the demand rises.

Examples of inferior goods include low quality food items like coarse cereals. A good can be a normal good for a consumer at some levels of income and an inferior good at other levels. For instance, at very low levels of income, a consumer's demand for low-quality cereals might increase with income, but beyond a certain level, any further increase in income is likely to reduce consumption as she switches to better quality cereals.