For four decades, PNC has calculated the costs of the 12 gifts mentioned in the famous holiday song, “The Twelve Days of Christmas.” This year, the annual Christmas Price Index® (PNC CPI) increase is mostly due to higher labor expenses, which reflect the state of the U.S. economy.
The 12 gifts that make up the PNC CPI have gone up to $46,729.86 this year, a 2.6% increase over 2022.
Amanda Agati, who is the chief investment officer for PNC’s Asset Management Group, mentioned that factors like the Federal Reserve’s aggressive interest rate hikes and slower economic growth in some major global economies, among other economic influences, have contributed to a lower PNC CPI compared to recent years.
Some industries are experiencing more persistent inflation than others, which is beyond the control of the Federal Reserve. On a positive note, wages are growing faster than the PNC CPI, which should help people celebrate the holiday season, especially considering the current high inflation environment.
This year, there were no price increases for five gifts: the Four Calling Birds, Five Gold Rings, Seven Swans-A-Swimming, Eight Maids-A-Milking, and Nine Ladies Dancing. While the cost of the Partridge remained the same, there was a 15% increase in the price of the Pear Tree, which indicates rising housing costs despite the highest mortgage rates since 2000.
Although some gifts on the list didn’t see price increases, the wages for skilled labor, represented by the performers in the song, have risen, affecting holiday budgets. While the cost of Nine Ladies Dancing stayed steady, Ten Lords-a-Leaping, Eleven Pipers Piping, and the 12 Drummers Drumming became more expensive, with performers’ prices increasing by 3.3% this year, significantly less than last year’s 14.6% surge.
If you were to purchase all 364 items mentioned repeatedly in the song, it would cost you $201,972.66 this year, which is 2.6% more than last year and the first time it has crossed the $200,000 threshold.