The inflation rate is expected to be 4.8544% next year.
Step-by-step explanation:
The data we have on this problem is:
The nominal interest rate is 8%.
The real interest rate is 3%.
Knowing the formula for the real interest rate

where R is the real interest rate, r is the nominal interest rate and i is the inflation rate, we can deduce the formula for the inflation rate as follows:
Step 1: multiply both members of the equation by (1+i)

Step 2: divide both members of the equation by (1+R)

Step 3: substract 1 from both members of the equation

Step 4: replace the given values in the equation

The inflation rate is expected to be 4.8544% next year.