The Institute for Economic Research

The Higher Education Price Index Rate of Inflation Forecast

The Higher Education Price Index (HEPI) is an index of the prices for the major components of university budgets: staff salaries, maintenance, utilities, etc. Around August 1 each year, the index for the previous academic year is calculated. Shortly after this the institute provides a range of likely values for HEPI in the current fiscal year (the one beginning July 1 immediately before the HEPI release) as well as for the following fiscal year.

The institute's HEPI predictions are provided to the Board of Regents, State of Iowa, as supporting information for the board's determination of tuition for the following academic year. For example, the August 1, 2008, forecast for the fiscal year beginning July 1, 2009, was provided for the board's deliberations about tuition in the 2009-2010 academic year.