The planner reports everything in today's dollars (also called real terms). A projection that shows $50,000 a year at age 85 means *$50,000 of today's spending power* — not a bigger nominal number that merely looks larger because of inflation. This keeps the figures meaningful: you can compare them directly to what things cost now.
Two-stage deflation
Following ASIC's guidance for retirement estimates, the model deflates in two stages: while you're working, balances are discounted by wage inflation (a bit above CPI, because incomes and the things they buy tend to rise faster); once you're retired, by CPI. The default assumptions are CPI 2.5% and wage inflation of CPI + 1.2%.
This is why a balance can look like it's *falling* in the chart even while it grows in raw dollar terms — it's being expressed in constant purchasing power.