University System of Georgia Chancellor Sonny Perdue is blaming a tuition hike at the state’s colleges and universities on inflation.

With the announcement last week about the rate hike, Perdue said, “Our institutions face increasing costs to operate, and we must sustain their momentum as some of the best in the nation at helping students succeed on campus and in the workforce,” he said.

Even with the tuition hike, Georgia offers the third-lowest average tuition and required fees among the 16 Southern Regional Education Board (SREB) states, according to national data.

The University System Board of Regents also adopted a new mandatory fee structure for the growing number of students taking classes fully online. Those students at 20 of the 26 institutions will be charged an online learning fee equivalent to their institution’s technology fee, as well as 50% of their institution’s mandatory fees.