Following a period of economic instability, the Republic of Valeria has introduced a series of fiscal adjustments. In its latest budget announcement, the Valerian government declared that total healthcare spending will increase by 5% over the coming financial year. However, economic analysts have pointed out that this adjustment represents a 'cut in real terms'. The Valerian Central Bank has forecasted that the annual consumer price index (CPI) inflation rate for the same period will be approximately 9%.
State why the proposed 5% increase in Valerian healthcare spending represents "a cut in real terms".
