This paper explains the education price index formulated in 1979 for Canada. It defines a price index as a statistical measure designed to show changes in the price of a commodity or a set of commodities with respect to time. The index calculated for the project covers salaries and wages, instructional supplies, school facilities, supplies and services, and fees and contractual services. The paper explains that the major purpose of the education price index is to enable the identification of the real level of resources going to public school systems after adjustment for inflation. Appended to the paper are a brief introduction to the index in both French and English together with preliminary data covering 1973 to 1978. (Author/JM)