Nominal income increases in an economy are to purchasing power as inflation is to what?

Nominal income is the amount of money people earn without considering how much things cost. When nominal income increases, it can help people buy more goods and services, which improves their purchasing power. However, inflation is when prices for goods and services rise, meaning that even if people earn more money, they may not be able to buy as much as before. In this way, inflation is to the cost of living as nominal income is to purchasing power; both are important for understanding how people's financial situation changes. For example, if someone gets a raise but prices of food and rent go up even more, they might feel like they have less money to spend, affecting their overall standard of living.