Inflation slows for U.S. colleges

PJ staff report | September 22, 2010

The cost of running a college or university in the U.S. decreased in fiscal 2010, with inflation at 0.9 percent, down from 2.3 percent in 2009, a new study says.

That drop continues a decline that started in 2008, says the Higher Education Price Index, published by the Commonfund Institute.

The higher education index is similar to the Consumer Price Index, but tracks the prices of a basket of eight types of goods and services used by colleges and universities, including faculty and administrative salaries, clerical salaries, fringe benefits, service employee salaries, supplies and materials, utilities and miscellaneous services.

While faculty and clerical salaries are highest-weighted categories in the index, and saw price increases of 1.4 percent and 1.2 percent, respectively, the sharp declines in two other categories pulled the index down for the year ended June 30, 2010.

Supplies and materials saw price deflation of 1.3 percent in 2010, down from an increase of 8.9 percent in 2008, and utilities fell 9.4 percent, off from an increase of 14.2 percent in 2008.

Fringe benefits saw the highest inflation rate of the year at 2.1 percent, followed by administrative salaries, which grew 2.0 percent.

Prices in the remaining categories grew from 1.1 percent to 1.4 percent.

Regionally, inflation was highest in the West South Central U.S., where prices grew 1.8 percent, while the East South Central region saw prices fall 1.2 percent, more than any other region.

All nine regions across the country saw significant slowing in inflation rates for the fiscal year.

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