PNC Bank’s “Christmas Price Index”

Every year PNC Wealth Management uses some of their resources to put together a list detailing the cost of all of the items from the classic song “12 Days of Christmas”. This year the grand total for the items from the “Twelve days of Christmas” is, according to “The PNC Christmas Price Index”, $24,263.19. That’s a 3.5% increase from last year’s price of $23,439.38. These prices are, of course, just for one verse of the song. If you add up the total cost of all the items from the entire song (what PNC Wealth Management calls “The True Cost of Christmas”) it would surmount $100,000! PNC calls it the “Christmas Price Index”, and it has been around since 1986, when the chief economist at Provident Bank decided to figure out exactly how much it would cost to purchase all of the items from the classic Christmas song 28 years ago. The “Christmas Price Index” was created by the Chief Economist at what was then Provident Bank in 1986. The index was created as a way to engage clients of the Bank during the traditionally slow weeks leading up to Christmas. Three factors that have largely driven changes in the “Christmas Price Index” over the years are; the internet, the price (price overall increases while price of goods has slowed), and Fuel costs. In their explanation of the “Christmas Price Index” PNC Bank notes that their index is comparable to the Consumer Price index, but is far more whimsical. They state that most years the changes in the “Christmas Price Index” closely mirror those of the Consumer Price Index, but are not to be taken too seriously; just a fun way to monitor consumer spending and other trends in the economy during the holiday season

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