Thank you for your question.
The short answer is yes. If a person has a certain amount of money to spend and prices have gone up in one category or another, it is definitely going to affect that person's purchasing power. However, the formula contains several elements. More transfers were made to households, which increased their purchasing power. That also increased demand.
However, as has been mentioned several times, when prices go up, in theory, that increases the value for households, so there are two ways of looking at this.
Finally, in many cases, substitutions are possible, so if something costs too much, a household will have to find an alternative, for example.
There are many factors to consider, but you are basically right.