PITTSBURGH, Nov. 15, 2017 /PRNewswire/ -- The PNC
Christmas Price Index predicts True Loves will be on their merry
way to a more robust and satisfying holiday shopping season this
year. To purchase the gifts included in the classic holiday song
"The 12 Days of Christmas," it will only cost 0.6 percent more than
in 2016, according to the 34th annual holiday economic
analysis by The PNC Financial Services Group.
PNC calculated the 2017 price tag for The PNC Christmas Price
Index at $34,558.65, approximately
$200 or 0.6 percent more than last
year's cost and less than the government's Consumer Price Index,
which increased 2.2 percent through September for the past 12
months.
"The U.S. economy is growing at a sustainable pace, fueled by
higher consumer confidence, low unemployment, modest wage gains,
and low interest rates," said Thomas P.
Melcher, chief investment officer for PNC Asset Management
Group. "However, The PNC Christmas Price Index rose at slow steady
pace of 0.6 percent in 2017, as companies appear hesitant to pass
through price increases to the consumer."
THE COST OF CHRISTMAS PRESENT
The cost of each item
was revealed this morning on PNC's interactive website
(pnc.com/ChristmasPriceIndex), which teaches consumers about the
index and features a historical comparison of index data. Of the 12
items measured by the index, nine remained the same price as last
year. This year's insights include:
- A Partridge in a Pear Tree: The overall price for this
top-of-list item increased 4.7 percent, but not because of the
Partridge. The pear tree increased 5.2 percent, from $189.99 to $199.95
due to increased cost of living for workers and the limited supply
of larger, more mature trees.
- Gold Rings: The largest growth rate in this year's index
was the cost of Five Gold Rings, which jumped 10 percent due to
increased demand and popularity. Prices had remained steady at
$750 during the last five years.
- Lords-a-Leaping: Despite wages rising modestly and a
tight job market, only the Lords-a-Leaping saw an increase, as
prices jumped two percent to $5,618.90 after two years of stagnant
growth.
To mirror the government's core CPI, which excludes energy and
food prices, PNC removes the Swans – typically the most volatile
item in the index – from its total index. The core PNC Christmas
Price Index was up 0.9 percent from a year ago, while the
government's core Consumer Price Index rose 1.7 percent
year-over-year through September.
For those True Loves who prefer the convenience of shopping
online, the PNC Christmas Price Index also calculates the cost of
"The Twelve Days of Christmas" gifts purchased on the Internet. As
Internet prices tend to be higher due to travel and shipping costs,
True Loves will have to splurge $45,096 ($10,538
more than in store purchases) for the convenience of online
shopping this year.
THE HISTORY OF CHRISTMAS PAST
A PNC predecessor bank
in Philadelphia began estimating
the cost of the 12 Christmas gifts in 1984 as a holiday client
letter. This year's price is 83 percent higher than the inaugural
report 33 years ago.
As part of its annual tradition, PNC also tabulates the "True
Cost of Christmas," which is the total cost of items bestowed by a
True Love who repeats all the song's verses. Purchasing all 364
gifts will require $157,558, up
approximately $1,000 from last year
and more than $57,000 from 1984.
The PNC index's sources include retailers, hatcheries, the
Philadelphia-based PHILADANCO and
the Pennsylvania Ballet Company.
THE EDUCATION OF CHRISTMAS YET TO COME
The PNC
Christmas Price Index website pnc.com/ChristmasPriceIndex also
includes a downloadable coloring book for kids of all ages and
interactive educational tools for teachers to help their students
learn about the stock market. Each year, educators across the
country use the PNC Christmas Price Index to teach middle and high
school students about inflation and economic trends.
Teachers who visit the site will have access to a lesson plan
from the Securities Industry and Financial Markets Association
(SIFMA) (www.sifma.org/foundation) that explains the PNC CPI, its
significance and how to interpret its results. The activities in
the lesson plan also help students make predictions about this
year's cost of Christmas. The SIFMA Foundation is dedicated to
providing youth of all backgrounds with an understanding of the
capital markets. Its most popular program is The Stock Market
Game™.
The PNC Financial Services Group, Inc. (NYSE: PNC) is one of the
largest diversified financial services institutions in the United States, 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. For information about PNC, visit www.pnc.com.
[PNC CHRISTMAS PRICE INDEX FOLLOWS]
2017 PNC Christmas
Price Index®
|
Based upon the song
"The Twelve Days of Christmas"
|
|
TRADITIONAL
|
INTERNET
|
|
|
|
% Change
|
|
|
% Change
|
|
2016
|
2017
|
2017/16
|
2016
|
2017
|
2017/16
|
One Partridge in a Pear
Tree
|
$
209.99
|
$
219.95
|
4.7%
|
$
244.94
|
$
269.00
|
9.8%
|
Partridge
|
$
20.00
|
$
20.00
|
0.0%
|
$
95.00
|
$
95.00
|
0.0%
|
Pear Tree
|
$
189.99
|
$
199.95
|
5.2%
|
$
149.94
|
$
174.00
|
16.0%
|
Two Turtle
Doves
|
$
375.00
|
$
375.00
|
0.0%
|
$
450.00
|
$
455.00
|
1.1%
|
Three French
Hen
|
$
181.50
|
$
181.50
|
0.0%
|
$
281.50
|
$
281.50
|
0.0%
|
Four Calling
Birds
|
$
599.96
|
$
599.96
|
0.0%
|
$
370.00
|
$
370.00
|
0.0%
|
Five Gold
Rings
|
$
750.00
|
$
825.00
|
10.0%
|
$
899.75
|
$
899.75
|
0.0%
|
Six
Geese-a-Laying
|
$
360.00
|
$
360.00
|
0.0%
|
$
1,350.00
|
$
1,488.00
|
10.2%
|
Seven
Swans-a-Swimming
|
$
13,125.00
|
$
13,125.00
|
0.0%
|
$
15,125.00
|
$
15,165.00
|
0.3%
|
Eight
Maids-a-Milking
|
$
58.00
|
$
58.00
|
0.0%
|
$
365.44
|
$
377.28
|
3.2%
|
Nine Ladies
Dancing
|
$
7,552.84
|
$
7,552.84
|
0.0%
|
$
8,322.55
|
$
8,322.55
|
0.0%
|
10
Lords-a-Leaping
|
$
5,508.70
|
$
5,618.90
|
2.0%
|
$
13,373.35
|
$
13,373.35
|
0.0%
|
11 Pipers
Piping
|
$
2,708.40
|
$
2,708.40
|
0.0%
|
$
2,200.00
|
$
2,475.00
|
12.5%
|
12 Drummers
Drumming
|
$
2,934.10
|
$
2,934.10
|
0.0%
|
$
1,620.00
|
$
1,620.00
|
0.0%
|
Total Christmas Price
Index
|
$
34,363.49
|
$
34,558.65
|
0.6%
|
$
44,602.53
|
$
45,096.43
|
1.1%
|
True cost of Christmas
in song
|
$
156,507.88
|
$
157,558.00
|
0.7%
|
$ 202,689.73
|
$ 204,848.65
|
1.1%
|
"Core" index, excluding
swans
|
$
21,238.49
|
$
21,433.65
|
0.9%
|
$
29,477.53
|
$
29,931.43
|
1.5%
|
CONTACT:
Rob Tacey
(302) 429-2743
robert.tacey@pnc.com
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SOURCE PNC Financial Services Group, Inc.