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| 2007 K-STATE STUDENT PRICE INDEX SHOWS RISING COSTS
MANHATTAN, KS – October 17, 2007- For the sixth consecutive year, tuition increases at Kansas State University have contributed significantly to increasing the overall price index for KSU students. The Student Price Index (SPI), compiled by the KSU Economics Club, increased by 6.3 percent from 2006. This increase was driven by a 13 percent rise in gas prices and nearly a 9 percent increase in tuition. One year ago the SPI had risen 5.8 percent, but last year students received some relief from lower gasoline prices. Figures released earlier today by the U.S. Bureau of Labor Statistics indicate that prices paid by urban consumers, (as measured by the U.S. Consumer Price Index) have increased only 2.1 percent. Ed Chesny, President of the KSU Economics Club, coordinated the efforts of several club members who visited local restaurants, grocery stores, filling stations, bars, and movie theaters to gather information about prices. “We know from our economics classes that students respond to price changes by substituting comparatively less expensive goods,” said Chesny, a senior from Claremore, OK. “This means we should expect the rational student to substitute beer drinking and eating pizza for tuition hours. Unfortunately, the large increase in grocery prices will make it more difficult to buy items other than beer and pizza.” Christina Forsberg, senior from Overland Park, KS, is the secretary of the KSU Economics Club. “Although rising tuition costs are a burden,” Forsberg observed, “it appears the increased online competition for textbook purchases has tempered these price increases. Now that gasoline is more expensive we are all staying here on the weekends using our reasonably priced textbooks and cruising Facebook when we break from our studies” . Megan Korte, sophomore from Overland Park, KS collected prices for this project. “I now better understand why so many students are not preparing their own meals. With grocery prices up nearly ten percent from last year, eating out has become a more viable option.” Professor Daniel Kuester serves as the faculty advisor for the KSU Economics Club. “This has been another difficult year for Kansas State University students. There has been little to no relief in inflationary pressures on the basic staples of food, gasoline and tuition for the typical K-State student,” he observed. “While college students are more affected by inflation than the average consumer, we can infer that from the perspective of our students, the value of a KSU education continues to increase even in comparison to rising costs.” He added, “College educated individuals on average earn higher wages and experience lower rates of unemployment than those without an advanced degree.” Increases in the prices of food, up 9.4 percent, and housing, up 4.6 percent, also contributed to the Student Price Index's 12-month growth, according to the Economics Club's figures. Other staples in the index include beer and movie tickets, which were up about four and sever percent respectively from a year ago. Pizza prices were unchanged from last year and that provided some relief to the typical student's budget. Ben Mooneyham from Topeka said, “We have learned in our economics classes that students are very price sensitive. We have elastic demand for goods and services so it is upsetting that the prices of goods that affect a typical K-Stater continues to increase much more rapidly than the prices of typical consumer goods” Gasoline +13.1 percent Groceries +9.4 percent Tuition +8.7 percent Beer +4.2 percent Housing +4.6 percent Textbooks +3.7 percent Pizza unchanged Movies +6.7 percent Contact: Dr. Daniel Kuester, 785-532-6341, dkuester@ksu.edu; Ed Chesny, ejchesny@ksu.edu, Christina Forsberg, 913-226-6044, forsberg@ksu.edu |
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