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PNC Christmas Price Index Reflects Mostly Reopened Economy – Business Journal Daily

PITTSBURGH, Pennsylvania – After a bah-humbug year for the country’s economy in 2020, PNC Financial Services Group Inc.’s 38th Annual Christmas Price Index reports a 5.7% increase over 2019 to include gifts from the classic Christmas carol ” The 12 days of Christmas. “

“With most of the live on-site performances canceled in 2020, we removed them from the index last year, resulting in an unprecedented 59% decline in PNC CPI in 2019,” said Amanda Agati, chief investment officer of PNC Asset Management Group. “Comparing 2019 data is a better measure of the impact of inflation before the impact of the pandemic hit the global economy. We’re trying to normalize the comparison by ruling out a one-off pandemic that had an overwhelming impact on last year’s data. “

The cost of the 12 gifts will be posted on PNC’s interactive website, which this year focuses on the fundamental lessons consumers can learn in a fun and interactive way.

Overall, the PNC Christmas Price Index surge of 5.7% to $ 41,205.58 includes the following highlights:

  • Performers resumed: It is gratifying that most of the live performances have returned in 2021, albeit in a modified form in most cases. But it’s not che – as True Love is on the hook for a number of “IOUs” this year and has to spend a hefty sum: $ 24,939.94, an overall 7.2% increase over 2019 for the Ladies Dancing, Lords- a-jumping, pipers piping and drummers drumming.
  • Poultry lovers fly high: The biggest price increases this year are in the exotic pet categories, with big peaks in Six Geese-a-Laying (57%), Two Turtle Doves (50%), and Three French Hens (40%). Inflation leads to higher costs for rearing the birds through higher feed and labor prices.
  • Gold rings with shine: In light of the uneven economic recovery and ongoing inflation worries, investors rushed to store stores of value like gold again this year. Gold rings are up 8.5% from 2019, reflecting the trend in gold commodity prices.

“In 2021, the inflation story due to COVID-19, as reported by the BLS consumer price index, surprised positively and, at 6.2%, is well above the US Federal Reserve’s inflation target of 2%. Although we assume that higher inflation trends are temporary, it is interesting that our special gift basket of goods and services fits relative to this increased price level, ”said Agati.

Technology has also taken the helm to fuel new consumer behavior and provide platforms for merchants to spread the Christmas cheer from home. As consumers shift their spending from goods to services again this year, retailers are rushing to deliver satisfying virtual shopping experiences.

Delivery companies are expected to continue to play an important role during this year’s Christmas shopping season, which is reflected in the additional travel and shipping costs that are factored into the PNC-CPI internet prices. A tech-savvy True Love will spend an additional $ 4,394 by filling out their shopping list online, and pays a total of $ 45,599 for easy e-commerce convenience. Free shipping for cattle purchases is still not an option.

The annual PNC-CPI tradition involves calculating the “true cost of Christmas,” which is the total cost of items given by a True Love who repeats all of the verses of the song. It costs $ 179,454 to purchase all 364 gifts, which means that cheering spreading will cost 5.4% more in 2021 than it was in 2019.

“Like the index, consumer behavior is the drummer for the US economy,” said Agati. “With 70% of US GDP linked to consumption, consumer health is key to future market performance. Keep an eye on guiding stars like retail sales, savings rates and consumer sentiment as indicators of success this holiday season. “

Source: PNC

Published by The Business Journal, Youngstown, Ohio.

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