Body
MANHATTAN, KS – October 20, 2021 - The cost of living for an average Kansas State University student increased this year, but by less than the inflation rate affecting the average American. Last year’s prices for K-State students declined by the largest percentage in the twenty-year history of the index, according to data collected by the K-State students. The 2021 Student Price Index (SPI), compiled by the Kansas State University Economics Club, increased by 2.6 percent from 2020, while the national Consumer Price Index increased over twice as much at the rate of 5.4 percent from 2020 before seasonal adjustment. The Student Price Index is based on prices collected on a bundle of goods a typical Kansas State University student purchases compared to the previous year’s prices. Driving the increase of the overall SPI were major increases in the prices of beer, groceries, gasoline. Minor inflation was found in the prices of tuition, housing, and movies. There was deflation or steady prices for a K-State student in the prices of ICAT tickets, textbooks, and pizza. Both the collection and analysis of the data was challenging this year given the current economic climate. The overall results were not surprising as Econ Club members expected some inflation to coincide with increased spending in the overall economy due partially to stimulus spending. Also, overall inflation has become a serious policy concern and economists would expect this to be reflected in the SPI. In 2020, the SPI decreased by 1.5 percent while the U.S. Consumer Price Index increased by 1.4 percent. This was the second time ever there was a decline in the Student Price Index. Both declines coincided with serious recessions in the overall U.S. Economy. The SPI indicates a significant difference in pricing behavior from the national average for consumers. CPI figures released on October 13 by the U.S. Bureau of Labor Statistics indicated that national prices increased by 5.4 percent over the preceding 12 months ending in September 2021. “Core” inflation, which ignores the volatile changes in food and energy prices and is the focus of many policymakers, increased by 4.0 percent from 2020 to 2021.