Double count inflation - 2013 CFAI exam? Q1 am

Why do you multiply the living expenses by 1+ 2.5% and then add 2.5% to the required rate of return? Isn’t that double counting inflation?

I guess if they say living expenses last year was 300k, then we assume the next year it grows by inflation, but technically speaking that one term is double counted by inflation since nothing else is inflation adjusted.

add 2.5 to required rate of return for perserving the real value of portfolio.

Because they gave you last year’s living expenses which need to be gross up by 2.5% for the coming year.