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Annual Christmas Price Index Reflects Pandemic’s Economic
Impacts
Special to The Truth
In a year marked by
unprecedented shocks to the economy, PNC’s 37th annual
Christmas Price Index (CPI) accounts for the pandemic’s
impact on the cost of purchasing presents from the classic
holiday song, “The 12 Days of Christmas.”
A lighthearted take on the
Bureau of Labor Statistics’ (BLS) Consumer Price Index,
which measures the average change in prices for goods and
services over time, the PNC version applies analysis to
procuring “True Love’s” 12 gifts. This year’s index includes
adjustments for the reality that many live performances have
been cancelled.
PNC calculated the 2020
price tag for the PNC Christmas Price Index at just
$16,168.10, a considerable decrease of $22,825.45 or -58.5%
over last year’s cost, with a third of the items literally
not available for purchase this year.
“In response to these
unusual times, we took a non-traditional view in calculating
the Christmas Price Index,” said Amanda Agati, chief
investment strategist for The PNC Financial Services Group.
“The biggest impact has been for live performances, which
are mostly unavailable. While some performing arts groups
are engaging through virtual presentations, it’s a silent
night at most symphonies and the lights have dimmed on many
dance companies, as reflected in this year’s significant
drop in PNC’s CPI data.”
The annual tradition also
includes calculating the “True Cost of Christmas,” which is
the total cost of items when repeating all the song’s
verses. Purchasing all 364 gifts will require $105,561.80,
which means that spreading cheer throughout 2020 costs 38%
less than in 2019, given the exclusion of live performances.
For the full report, along
with lessons consumers can learn from the pandemic’s
economic impact, visit, pnc.com.
2020 has been anything but
conventional for consumers, the markets and the economy, and
this year’s Christmas Price Index most notably highlights
the change with a season of silence for many live
performers.
Courtesy StatePoint
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