The Higher Education Price Index rose 3.6% in fiscal 2025, driven by gains in administrative (4.8%) and faculty (4.3%) salaries, according to the Commonfund Institute. Two‑year public colleges saw the highest inflation at 4.6%, with faculty salaries at those institutions jumping 8.7%—the largest single‑category increase reported. HEPI’s reading outpaced consumer‑price inflation and continues a multi‑year period of elevated cost pressure that has influenced recent campus budget cuts, program closures, and gloomy sector outlooks from credit rating agencies. Utilities, service employees and clerical costs also rose, while supplies and materials saw a small decline. Campus leaders warned that sustained HEPI growth will force difficult tradeoffs in hiring, programming and tuition decisions as institutions balance affordability with operational viability.