cfai v.3 p119 q3

when the answer calculates the risk premium, why is the inflation not included? is it because it is inflation rate, as opposed to inflation premium?

Inflation is not part of the risk premium Expected return = Nominal Risk-free rate + risk premium inflation is actually part of the nominal risk-free rate in this equation in this Q >>>> Nominal Risk-free rate = Real risk-free rate + Expected inflation

thanks, that makes sense.