Is The Economy Feeling The Holiday Spirit? PNC Christmas Price
Index Surges 4.8 Percent In 2012
PITTSBURGH, Nov. 26, 2012 /PRNewswire/ -- An improving
economy coupled with a severe drought that caused increased feed
costs for large birds generated a 4.8 percent surge in the 2012 PNC
Christmas Price Index®, the whimsical economic analysis
by PNC Wealth Management.
To view the multimedia assets associated with this release,
please click:
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Based on the gifts in the holiday classic, "The Twelve Days
of Christmas," the price tag for the PNC CPI is $25,431.18 in 2012, $1,168 more than last year. The CPI increased by
a modest 3.5 percent last year following a 9.2 percent leap in
2010.
The 29th annual survey results were revealed this
morning on an enhanced website (www.pncchristmaspriceindex.com)
that includes an innovative worldwide gift hunt using the web. The
website also reflects PNC's commitment to education by teaching
economic trends through the PNC CPI.
This year, the PNC CPI's increase outpaced the government's
Consumer Price Index, which stands at 2.2 for the past 12 months
through September. The core index, removing volatile food and
energy prices, is also at 2.0 percent.
"The rise of the PNC CPI is larger than expected considering the
modest economic growth we've had over the past 12 months," said
Jim Dunigan, managing executive of
investments for PNC Wealth Management. "Despite some weak
spots in the economy, consumer balance sheets are improving along
with consumer confidence, which means this may still be a spirited
holiday season."
As part of its annual tradition, PNC Wealth Management also
tabulates the "True Cost of Christmas," which is the total cost of
items gifted by a True Love who repeats all of the song's verses.
This holiday season is the most expensive year ever: very
thoughtful True Loves must fork over $107,300.24 for all 364 gifts, an even more
generous jump of 6.1 percent increase compared to last year.
Inflation Flag and Index Highlights
Much like the government's CPI, the PNC CPI also measures a Core
Index – up a modest 2.6 percent this year - that excludes the
Swans, which tend to be the most volatile in the index. Swans rose
by 11.1 percent, continuing the momentum of last year's 12.5
percent increase, to $7,000.
Other Key Components Include:
- Six items (the Partridge, Two Turtle Doves, Four Calling
Birds, Eight Maids-A-Milking, Nine Ladies Dancing and 10
Lords-A-Leaping) remained the same price as last year.
- Sounding an Increase: The prices for 11 Pipers Piping
($2,562.00) and 12 Drummers Drumming
($2,775.50) advanced this year, both
up 5.5 percent.
- Pear Tree: Economists report that housing prices may
have bottomed and this trend is reflected in the PNC CPI as the
home to the Partridge jumped 11.8 percent to $189.99. The Three French Hens were up 10.0
percent and the Five Gold Rings, which soared 16.3 percent, played
catch up with the dramatic rise in gold prices in 2011.
- Maids-a-Milking: As the only unskilled laborers in the
PNC CPI, the price for the eight Maids-a-Milking is represented by
the minimum wage. With the minimum wage flat at $7.25 per hour, hiring the maids this year will
not increase labor costs.
The PNC CPI's sources include retailers, the National Aviary in
Pittsburgh and the Philadelphia-based Philadanco and Pennsylvania
Ballet Company.
Cyber Prices: The Cost of Convenience
For those True Loves who prefer the convenience of shopping
online, PNC Wealth Management calculates the cost of "The Twelve
Days of Christmas" gifts purchased on the Internet.
This year, the trends identified in the traditional index are
repeated in the Internet version. True Loves will pay a grand total
of $40,440 to buy the items online.
That is 1.5 percent more expensive than last year and almost
$580 more than this year's
traditional index.
"In general, Internet prices are higher than their non-Internet
counterparts because of premium shipping costs for birds and the
convenience factor of shopping online," Dunigan said.
Special Present: Updated Website
For a historical look at PNC's index, the updated website can be
viewed at www.pncchristmaspriceindex.com. The
site includes an interactive scavenger hunt where visitors take a
trip around the world to locate the 12 gifts of Christmas.
Each year, educators across the country use the Christmas Price
Index to teach economic trends to middle and high school students.
With that in mind, this year's site includes interactive
activities, annual results and PNC CPI trends in a Flash
presentation, MP3 downloads and much more.
Educators who visit the site will also find lesson plans on the
Christmas Price Index from The Stock Market Game™
(SMG), a program of the Securities Industry and Financial Markets
Association Foundation for Investor Education
(www.sifma.org/education). The enhanced activities are specially
designed to help students identify economic trends and to project
their impact on this year's Index, giving them the opportunity to
make predictions and check their success against actual results.
SMG is America's premier educational stock market simulation.
Available in all 50 states for grades 4-12, the SMG program teaches
children core academic and investment skills.
To view or download broadcast quality video and other multimedia
assets related to this announcement, visit
http://pnc.thedigitalcenter.com. In addition, follow
#PNCcpi on Twitter.
The PNC Financial Services Group, Inc. (NYSE: PNC) is one of the
nation's largest diversified financial services organizations
providing retail and business banking; residential mortgage
banking; specialized services for corporations and government
entities, including corporate banking, real estate finance and
asset-based lending; wealth management and asset management. Follow
@PNCNews on Twitter for breaking news, updates and
announcements from PNC.
[PNC CHRISTMAS PRICE INDEX TABLE FOLLOWS]
2012
PNC Christmas Price Index®
|
|
|
|
|
|
|
|
|
|
TRADITIONAL
|
|
|
INTERNET
|
|
|
|
|
%
Change
|
|
|
%
Change
|
|
2011
|
2012
|
2012/11
|
2011
|
2012
|
2012/11
|
One
Partridge in a Pear Tree
|
$
184.99
|
$
204.99
|
10.8%
|
$
242.44
|
$
242.44
|
0.0%
|
Partridge
|
$
15.00
|
$
15.00
|
0.0%
|
$
80.00
|
$
80.00
|
0.0%
|
Pear Tree
|
$
169.99
|
$
189.99
|
11.8%
|
$
162.44
|
$
162.44
|
0.0%
|
Two Turtle
Doves
|
$
125.00
|
$
125.00
|
0.0%
|
$
445.00
|
$
365.00
|
-18.0%
|
Three
French Hen
|
$
150.00
|
$
165.00
|
10.0%
|
$
300.00
|
$
315.00
|
5.0%
|
Four
Calling Birds
|
$
519.96
|
$
519.96
|
0.0%
|
$
520.00
|
$
550.00
|
5.8%
|
Five Gold
Rings
|
$
645.00
|
$
750.00
|
16.3%
|
$
699.70
|
$
874.75
|
25.0%
|
Six
Geese-a-Laying
|
$
162.00
|
$
210.00
|
29.6%
|
$
1,386.60
|
$
1,386.60
|
0.0%
|
Seven
Swans-a-Swimming
|
$
6,300.00
|
$
7,000.00
|
11.1%
|
$
10,412.50
|
$
10,850.00
|
4.2%
|
Eight
Maids-a-Milking
|
$
58.00
|
$
58.00
|
0.0%
|
$
337.92
|
$
339.84
|
0.6%
|
Nine
Ladies Dancing
|
$
6,294.03
|
$
6,294.03
|
0.0%
|
$
8,322.55
|
$
8,322.55
|
0.0%
|
10
Lords-a-Leaping
|
$
4,766.70
|
$
4,766.70
|
0.0%
|
$
13,373.35
|
$
13,373.35
|
0.0%
|
11 Pipers
Piping
|
$
2,427.60
|
$
2,562.00
|
5.5%
|
$
2,200.00
|
$
2,200.00
|
0.0%
|
12
Drummers Drumming
|
$
2,629.90
|
$
2,775.50
|
5.5%
|
$
1,620.00
|
$
1,620.00
|
0.0%
|
|
|
|
|
|
|
|
Total
Christmas Price Index
|
$
24,263.18
|
$
25,431.18
|
4.8%
|
$
39,860.06
|
$
40,439.53
|
1.5%
|
|
|
|
|
|
|
|
True cost
of Christmas in song
|
$
101,119.84
|
$
107,300.24
|
6.1%
|
$
174,382.93
|
$
177,957.93
|
2.1%
|
|
|
|
|
|
|
|
"Core"
index, excluding swans
|
$
17,963.18
|
$
18,431.18
|
2.6%
|
$
29,447.56
|
$
29,589.53
|
0.5%
|
CONTACT:
Alan Aldinger
(412) 768-3711
alan.aldinger@pnc.com
SOURCE PNC Wealth Management