What does "cost inflation-adjusted terms" mean in this sentence?

Question

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But the impact on new capacity of higher spending is being blunted by rising costs. Expressed in *cost inflation-adjusted terms*, investment in 2006 is only 5% above that in 2000.

Answer 1

It means real returns which you subtract out inflation.

eg. Return is 10% and inflation is 3%, real return/inflation-adjusted return = 7%

Answer 2

Actual rate-inflation rate gives the real rate. What it says in your question is, in 2000 dollars the 2006 'capacity of higher spending' is only 5% above 2000 level.

Answer 3

properly, they are evaluating investments between the two years, and shall we's say investments between the 6 years bigger by ability of a definite proportion. That distinction although looks bigger than that's, because of the fact it does not evaluate increasing costs and inflation between the six years, so as that they re-alter this to in basic terms a real 5% improve.