cchang

I would have to look at the two other than this vague summary.  But, in general, even if both salary and expenses grow at inflation, therefore creating a constant real inflow/outflow each year, you still need to protect the portfolios value from inflation so it should be added (or multiplied) to the return requirement.
E.G. expenses is one area in which inflation needs to be considered, the portfolio is the other (and larger) part.