Over the past two years we have been bombarded with talk about inflation and the impact on the costs to produce products and the cost to purchase necessities. Businesses and consumers are confronted with inflation at rates not seen for 40 years, and not experienced by the majority of the people living in the US today.
With the holidays upon us, let’s revisit our look at the
The PNC Christmas Price Index
(trademarked as PNC CPI®)
For 39 years PNC bank has been publishing the PNC Christmas Price Index! Here is a link to the PNC CPI® website.
The 2022 PNC Christmas Price Index shows an inflation rate of 10.5%, following 5.7% in 2021, resulting in a two year PNC CPI increase of 16.8%. The total purchase price of the 12 days of Christmas gifts in 2022 is at $45,523.27 compared to $39,993.59 in 2020. The first year of the PNC Christmas Price Index was 1984, when the 12 days of Christmas gifts would have cost $20,069.58.
When you are playing Christmas Trivia this year remember the 12 days of gifts include. The gifts are:
A partridge in a pear tree,
Two turtle doves,
Three French hens,
Four calling birds,
Five gold rings,
Six geese a-laying
Seven swans a-swimming,
Eight maids a-milking,
Nine ladies dancing,
Ten lords a-leaping,
Eleven pipers piping,
Twelve drummers drumming.
The four gifts with the highest price increases were Five Gold Rings with a 39.1% increase, Two Turtle Doves with a 33.3% increase, A Partridge in a Pear Tree with a 25.8% increase, and Three French Hens with a 25.0% increase.
The increase in the cost of these gifts reflects the 2022 economy. Commodity price increases and fluctuations, fertilizer cost increases, and feed cost increases combined to increase the price of gifts relying on these inputs.
As you finish your Christmas shopping these price increases may change what you buy and how much you buy. The retail sales trends and consumer debt levels being reported reflect the concerns of consumers and the decision making they are undertaking as they place presents under the tree this year.
We wish all of you a Happy Holiday Season! Happy Hannukah! Merry Christmas!
And, let’s all wish for a very Happy New Year.