What is HEPI?
The Higher Education Price Index (HEPI) is an inflation index, issued annually and designed specifically to track the main cost drivers in higher education. It is an essential planning tool for educational managers, enabling schools to project the future budget and funding increases required to maintain real purchasing power and investment. HEPI measures the average relative level of prices in a fixed basket of goods and services purchased by colleges and universities each year through current educational and general expenditures, excluding research. It is compiled from data reported and published by government and economic agencies. The eight categories cover current operational costs of colleges and universities. These include salaries for faculty, administrative employees, clerical employees, and service employees; fringe benefits; utilities; supplies and materials; and miscellaneous services. Since fiscal year 2002, HEPI has been based on a regression formula.
