Among the academic community, there is a perception that there is an upward shift in grade point average over an extended period of time without a corresponding increase in achievement. This trend has become an alarming topic among educators, industry and the general public. Some attribute increases in GPA to improvements in student quality while others point to the emergence of a consumer-based perception of education that unjustly awards high grades. The objective of this paper is to review various opinions regarding grade inflation, investigate whether grade inflation exists in engineering curricula, and analyze the related factors. Using eight years of detailed course data from a college of engineering, we seek insight into recent grading practices within each engineering discipline. The results indicate an upward trend in grade point average and an increasing prevalence of "A" grades. However, both trends match increases in student achievement potential as measured by ACT composite score. The results also show different grade outcomes among the engineering departments and the importance of class size as a predictor of grades. (Contains 4 tables and 8 figures.)