Does a high school's average ACT/SAT matter?

If a high school has a average ACT score of say 27, would a college think that this high school would likely not have grade inflation and that GPA is a good indicator. Or would admissions not care. Do colleges care how your ACT or SAT compares to the average of your high school. If so, how many points above the high school’s average is good; let’s say the average is a 27.

Doesn’t matter.

Colleges look to see how your score compares to the typical score of an accepted applicant at the college.