Colleges and universities reported higher-than-expected operating cost inflation in 2025, with Commonfund’s Higher Education Price Index at 3.6% for the year. Institutions cited volatile utilities, campus IT and maintenance, and personnel costs as pressures compounding revenue challenges from flat enrollments and uncertainty in federal research funding. Rating agencies flagged elevated expenses as a key driver behind negative outlooks for some campuses, prompting calls for improved financial modeling, cost control, and strategic planning. University CFOs and boards are being urged to recalibrate budgets and contingency plans to account for persistent cost inflation and potential shocks to revenue streams.