Review of treatment of inflation 2020

  • Accepting submissions
Date completed: 
31 December 2020
Date initiated: 
7 April 2020
Effective date: 
31 December 2020
General enquiries - Inflation review
AER reference: 


The AER is reviewing the treatment of inflation in our regulatory framework, including the method likely to result in the best estimates of expected inflation. This will allow us to consider possible changes to our approach. The review will be a transparent and consultative process. To assist in representing the perspectives and interests of consumers in this important review we have also established the Consumer Reference Group (CRG). We aim to reach a final position by December 2020. If that final position recommends changes to our approach, we will implement those changes in 2021.

We initiated the review on 7 April 2020 and expect to release a draft position in September 2020, and a final position by the end of the year.

We released a discussion paper on the treatment of inflation and sought stakeholders submissions. We also held a public forum on our discussion paper. A technical workshop was held on Thursday 13 August 2020. The purpose of this workshop was to explore scenarios and mechanics for possible changes to the regulatory framework for the treatment of inflation.

On 1 October 2020, we released our draft position on the Review of Treatment of Inflation. 

Invitation for submissions

Interested stakeholders are invited to attend a forum on our draft position on 21 October 2020 and to make written submissions by 6 November 2020.