Although there is clearly a grade inflation, the correlation between student selectivity and average GPA should also be noted:
"As a rough rule of thumb, the average GPA of a school today can be estimated by the rejection percentage of its applicant pool:
GPA = 2.8 + Rejection Percentage /200 + (if the school is private add 0.2)
Non-selective public schools (typically with 15 percent rejection rates or less) with GPAs in the 2.8 range or less tend to have only modest grade inflation. Some have none."