Christmas Price Index increases 5.4%, significantly more than U.S. Consumer Price Index

PITTSBURGH — National inflation levels may be on the decline, but when it comes to True Loves’ gifts, the price of decking the halls keeps rising.

Now in its 41st year, PNC Bank’s annual Christmas Price Index rose 5.4% — doubling last year’s 2.7% increase and surpassing the Bureau of Labor Statistics’ Consumer Price Index for October’s year-over-year reading of 2.6%.

The Christmas Price Index measures the change in prices consumers could expect to pay for True Love’s gifts from the classic holiday carol, “The Twelve Days of Christmas.” Data is compiled by PNC’s Investment Office using sources from across the country, including dance and theater companies, hatcheries, pet stores and others.

Unwrapping the data a little further reveals the increase in the Christmas Price Index, like last year, was driven mainly by service costs, while bird prices mostly have yet to take flight. True Loves should hang on for deer life because overall, the 12 gifts that comprise the Christmas Price Index increased to a tree-topping $49,263 this year.

“Believe it or not, we’re still seeing the cause and effect of the pandemicinflation hangover, even nearly five years later,” says Amanda Agati, chief investment officer of PNC’s Asset Management Group. “With years of steep price increases, we’d think inflation has nowhere to go, but we’d be wrong. This latest Christmas Price Index is an accurate reflection of what we’re seeing in the market.”

Purchasing all 364 gifts — the “True Cost of Christmas,” that is buying the gifts with verses repeated — crossed the $200,000 threshold for the first time last year, and today settles in 3.6% higher at $209,272. Trying to quickly sleigh your list by shopping online? Price increases for tech-savvy Santas were lower than those who shop in stores, but the total remains higher at $54,074. The convenience of shopping from home is still impacted by elevated shipping and packaging costs that have yet to ease since the pandemic.

Since the Christmas Price Index launched, the Consumer Price Index has increased 213%, while the Christmas Price Index increased 146%. The differences in calculation methodology are going to result in distinct outcomes, but overall inflation trends have remained remarkably consistent over the years. During the last 41 years, the Christmas Price Index has evolved alongside changes in U.S. GDP as the economy has shifted from a manufacturing focus to one led by services. In 1984, goods composed 70% of the index, with the cost of services accounting for the remainder. Fortyone years later, there’s been almost a complete reversal, with services accounting for the majority of the index at 65% and goods at just 35%.

Inflation trends repeat, much like the verses of the song itself

There were no price increases this year for five of the gifts in the Index, including the two turtle doves, four calling birds, five gold rings, seven swans-a-swimming and eight maids-a-milking.

Although the partridge was unchanged, there was a 17.1% jump in price for the pear tree — a proxy for housing costs, which likewise continue to move higher despite average mortgage rates edging lower.

True Loves will benefit from little to no price increases for goods on this year’s list, however, rising wages for skilled labor, represented by the performers, will make a bigger dent in their budget this year. Strong labor markets have helped spread cheer to many workers who have seen wage growth rise, consistent with trends in the Consumer Price Index. The cost of nine ladies dancing and 10 lords-aleaping jumped to new heights, 11 pipers piping trumpeted higher, and the 12 drummers drumming beat a stronger sum. In aggregate, prices for performers increased 7.9% this year, substantially higher than last year’s 3.3%.

The cost of all 12 gifts is reported on PNC’s interactive website (www.pnc. com/en/about-pnc/topics/ pnc-christmas-priceindex. html), which is meant to be as fun as it is educational. “Buying the same gifts year after year may seem boring,” Agati says, “but keeping track of changes in your spending enables you to make brilliant moves with your money, which is what I think the Christmas Price Index sets out to do.”

PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the U.S., organized around its customers and communities for strong relationships and local delivery of retail and business banking, including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.

A Partridge in a Pear Tree

$370.18 (+16.0%)

The Partridge in a Pear Tree climbed 16% in 2024 – this year’s biggest percentage jump in price. The bird costs the same, but the tree is rooting itself deeper in True Love’s wallet this year.

Two Turtle Doves

$750 (0.0%)

After a hefty price increase in 2023, the turtledoves are taking a break from sticker-shock this year. Their $750 cost reflects their rarity.

Three French Hens

$346.50 (+5.0%)

It’s another modest increase for the French Hens in 2024. They rose in price by 5% this year, but they’re still the second least expensive gift in the index, making them a brilliant bargain.

Four Calling Birds

$599.96 (0.0%)

No, you didn’t time travel back to the 2014 Christmas Price Index. The Four Calling Birds just haven’t changed prices since then. While remaining the same for ten years can be boring, in this case it makes for reliable planning in True Love’s budget.

Five Gold Rings

$1,245 (0.0%)

Quick, run to the jeweler. It’s the second straight year of flat pricing in the gold market after more than five years of price hikes for this precious metal.

Six Geese-A-Laying

$900 (+%15.4)

The geese are on a growth streak and they’re one of the most volatile gifts in this year’s index. Their price grew by 15.4% in 2024, and that is something to honk about.

Seven Swans-A-Swimming

$13,125 (0.0%)

To buy the swans, True Love needs to be a-swimming in cash. They stayed flat this year, but they’re still the second most expensive gift in the index at $13,125.

Eight Maids-A-Milking

$58 (0.0%)

Tied to the Federal Minimum Wage, which hasn’t changed since 2009, the Eight Maids-a-Milking remain priced at $58 this year.

Nine Ladies Dancing

$8,557.37 (3.0%)

True Love likely won’t find much solace in the fact that the price to hire a dance company only grew modestly this year. The nine ladies dancing are still one of the most expensive gifts in the index.

Ten Lords-A-Leaping

$15,579.65 (+7.2%)

“Leaping” is right. As if they needed the additional buffer, the ten lords leapt an additional 7.2% in total price to cement their hold as the most expensive gift in the index, surpassing the Swans last year. So, if Lords are under the tree, that’s true love indeed.

Eleven Pipers Piping

$3,714.96 (+15.8%)

It’s been an expensive year in the entertainment industry and the pipers are demanding their share. Their price ballooned 15.8% in 2024 due to labor costs. It might be a brilliant move to start practicing.

Twelve Drummers Drumming

$4,016.85 (+15.8%)

Not to be outdone by the rival pipers, the drummers also commanded a nearly 16% raise this year indicating wage inflation marches on.

True Cost of Christmas in Song

$209,272 (+3.6%)

This represents the total cost of all the gifts bestowed by True Love when you count each repetition of the song, totaling 364 presents. Spreading cheer throughout the year in 2024 costs 3.6% more than in 2023.

“Core” Index (excluding Swans)

$36,138.47 (+7.5%)

This version of the Christmas Price Index removes the most volatile gift from the index — the Swans-a-Swimming.

About the Index

The PNC Christmas Price Index is an annual tradition which shows the current cost for one set of each of the gifts given in the song ‘The Twelve Days of Christmas.’

It is similar to the U.S. Consumer Price Index, which measures the changing prices of goods and services like housing, food, clothing, transportation and more that reflect the spending habits of the average American.

The goods and services in the Christmas Price Index are far more whimsical, of course. And most years, the price changes closely mirror those in the U.S. Consumer Price Index.

It’s a fun way to measure consumer spending and trends in the economy. So, even if pipers piping or geese-a-laying didn’t make your gift list this year, you can still learn a lot by checking out why their prices have increased or decreased over the years.