Higher Education prices and price indexes for fiscal years 1979-1981 are presented, with narrative explanation. A price index series measures the effects of price change on a fixed group of items. The change in price index values from year to year may be interpreted as the change in dollars required to offset the effects of inflation in buying the same kinds and amounts of goods and services previously purchased. Regularly published price indexes include projecting expenditure levels and determining whether spending keeps pace with price level changes. The Higher Education Price Index (HEPI) measures average changes in prices of goods and services purchased by colleges through current-fund educational and general expenditures. Sponsored research and auxiliary enterprises are not priced by the HEPI. The HEPI is based on the prices (or salaries) of faculty and of administrators and other professional service personnel, nonprofessional personnel, and contract services. HEPI data for personnel compensation, contracted services, supplies, and equipment are presented, along with comparable data for the Research and Development Price Index, (R&DPI), which measures changes in prices of goods and services bought by universities through current direct expenditures for sponsored research. Data are presented on subindexes of wages and salaries of various types of nonprofessional and professional personnel used for the HEPI and R&DPI, fiscal years 1971-1981. In addition, subindexes of various contracted services used for the HEPI and R&DPI are provided. Annual percentage changes for the price indexes are included. (SW)