what is meant by “inflation-adjusted”?
I am not sure whether it is meant by “inflation-removed” or “inflation- concluded”. Seems to me it has different meanings in different context.
1) In Example 4 on page 229, curriculum vol 2, that the annual spending of ZAR1,000,000 on an “inflation-adjusted basis”, I think it is actually in real terms, not including the inflation rate of 3%, otherwise it should be discounted back at the nominal risk free rate of 5%. Also the similar case in the example on page 227, “…The Webster’s inflation adjusted annual spending needs…”. I think it refers to the spending needs not including inflation, in other words, it is on a inflation-removed basis.

2) But, on the bottom line on page 131, curriculum vol 2, the “inflation-adjusted income” seems to be on an inflation-included basis (also the same case in Q1, 2007 exam, their inflation-adjusted expenses will remain constant…).

Now I got totally lost. What on earth is it meant by “inflation-adjusted”?
Does it refer to different things in specific context? And do we have to make judgment under specific circumstances?