How concerned should we be about inflation? How concerned should we be about the rising costs of higher education? According to Congressman Russ Carnahan, “Congress has not raised the minimum wage since 1997, and it is now at its lowest level in 50 years, adjusted for inflation” (Russ Carnahan). At the same time, critics point out that schools are raising tuition at rates above inflation (Weisbrod et. al, 2011). As they battle inflation and calm concerns about their fiscal management, colleges and universities are expected to manage capital and operations and stay within restrictive budget limits. The Higher Education Price Index, or HEPI, is one tool they might find useful in fighting inflation. This particular inflation index is made with higher education in mind, a customized indicator of cost changes for colleges and universities (Commonfund, 2011). The Higher Education Price Index (HEPI) serves to guide, highlight or otherwise facilitate reference for the persistent increase in the price level in various categories affects the increased costs of education. The Commonfund Institute disseminates the Index free of charge to educational institutions each year. The Commonfund Institute does not generate the data used, but the HEPI is built from data distributed by government and economic agencies. Research Associates of Washington, DC produced the HEPI until 2005, when the Commonfund Institute assumed responsibility for managing the index. Unlike the Consumer Price Index, “the HEPI is an inflation index designed specifically to track major cost drivers in higher education,” according to the Commonfund website. Since fiscal year 2002, the HEPI has been based on a regression formula. Regression analyzes are widely used...... half of article...... Baltimore, MD: The Johns Hopkins University Press.Hurley, D.J., McBain, L., Harnisch, T., & Russell, A. (2011, January). Top 10 State Higher Education Policy Issues for 2011. Retrieved from http://www.aascu.org/uploadedFiles/AASCU/Content/Root/PolicyAndAdvocacy/PolicyPublications/PM-Top10for2011.pdfKelly, John. (March 29, 2010). How the Hope Scholarship works. Retrieved from http://money.howstuffworks.com/personal-finance/college-planning/financial-aid/hopescholarship.htm. Leslie, L.L., & Rhoades, G. (1995). Increase in administrative costs: I'm looking for explanations. Journalof Higher Education, 66(2), 187-212.Russ Carnahan. Quotations (2012). Retrieved from http://www.brainyquote.com/quotes/authors/r/russ_carnahan.htmlWeisbrod, B. A., Ballou, J. P., & Asch, E. D. (2010). Mission and money: Understanding college. Cambridge: Cambridge University Press.