PURCHASING POWER of your income has DIMINISHED

The purchasing power of your income has diminished if the salary has not been adjusted(increased) to the INFLATION RATE each year.

The Purchasing power of your income has diminished if taxes have gone up on your Gross salary but the Gross salary has not gone up also leaving you with less net income.

Look at your net income : has it followed THE INFLATION RATE each year and the rise IN TAXES(all types of taxes) ? if not, then the purchasing power of your income has diminished: you cannot buy the same GOODS and SERVICES with the same net income, you must disbursed more.