PNC Banks annual index shows the costs are up 5.4%
of ConsumerAffairs
Inflation has put a dent in many a holiday budget over the last two years and the gifts cataloged in the song The 12 Days of Christmas have not been spared. PNC Bank's annual Christmas Price Index (CPI)shows those items are even more expensive in 2024, rising by 5.4%, doubling last year's increase and surpassing the governments Consumer Price Index October year-over-year reading of 2.6%.
The PNC CPI measures the cost of gifts mentioned in the classic holiday song. The data is compiled by PNC's Investment Office using a variety of sources, including dance and theater companies, hatcheries, and pet stores. This year's increase is primarily driven by rising service costs, while the prices of birds have remained relatively stable.
"With years of steep price increases, we'd think inflation has nowhere to go, but we'd be wrong," said Amanda Agati, chief investment officer of PNC's Asset Management Group.
The total cost of the 12 gifts in the PNC CPI has reached $49,263, reflecting ongoing economic trends.
For those considering purchasing all 364 gifts the "True Cost of Christmas," which includes repeated verses the total has risen to $209,272, a 3.6% increase from last year. Online shoppers face a slightly lower increase, with the total cost at $54,074, though elevated shipping and packaging costs remain a factor.
Since the inception of the PNC CPI, the governments CPI has increased by 213%, while the PNC CPI has risen by 146%. This divergence highlights differences in calculation methodologies, yet both indices reflect consistent inflation trends over the years.
You have to pay nine ladies dancing a lot more this year
The PNC CPI has evolved alongside the U.S. economy, shifting from a manufacturing focus to a service-led economy. In 1984, goods accounted for 70% of the index, whereas today, services comprise 65%.
Interestingly, five of the gifts in the index, including Two Turtle Doves and Five Gold Rings, saw no price increase this year. However, the cost of the Pear Tree, a proxy for housing costs, jumped by 17.1%.
Rising wages for skilled labor, such as performers, have also contributed to the overall increase. Prices for performers like Nine Ladies Dancing and 10 Lords-a-Leaping rose by 7.9%, significantly higher than last year's 3.3%.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-26 12:10:11
