According to the report, half of all grades awarded to Harvard undergraduates are A's or A-'s.
The report adds that the humanities have the biggest problem with grade inflation, with A's and A-'s making up almost two-thirds of grades awarded in small humanities classes.
In a letter accompanying the report, Susan Pedersen, Harvard's dean of undergraduate education, said actions will be taken in the spring to correct this trend.
UNC economics Professor Boone Turchi said the report's findings indicate a problem that needs to be addressed by many universities, including UNC. Turchi brought the issue to the forefront at the University two years ago, saying inflated grades needed to be investigated.
The Faculty Council approved a resolution this fall requiring individual departments to monitor grade inflation and give annual reports to deans. An amendment to the resolution also required that the Educational Policy Committee collect information from those reports for the council.
Turchi said the Harvard report's findings will remind the faculty of the issue on the UNC's campus.
Harvey Mansfield, a Harvard government professor and the lead opponent of grade inflation, said the issue is a major epidemic at the university. "I think it's a scandal here at Harvard."
But he said grade inflation is not limited to Harvard and is especially prevalent in other private institutions.
Mansfield said in addition to the staggering percentage of A's and A-'s, more than 90 percent of students graduate with honors.