As with so much in our lives this year, the COVID-19 pandemic stands to have an impact on true love.
More specifically, an impact on the cost of obtaining the items that “true love” acquires recounted in that classic holiday song, “The 12 Days of Christmas.” Considering the impact of social distancing, PNC calculated the 2020 price tag for the PNC Christmas Price Index at just $16,168.10—and that turns out to be a considerable decrease—$22,825.45 or -58.5% over last year’s cost—but not for a good reason.
Indeed, according to PNC’s 37th annual Christmas Price Index, a full third of the index constituents are literally not available for purchase this year.
A light-hearted take on the Bureau of Labor Statistics’ (BLS) Consumer Price Index, the PNC version applies its own analysis to procuring True Love’s 12 gifts. This year’s index includes adjustments for the reality that many live performances have been cancelled, not only putting a crimp on several key elements, but meaning that True Love must now rely primarily on technology to share those “tidings of joy.”
Some insights from this year’s index:
Birds of a feather are (still) flocking together and represent the largest price increases in this year’s index totaling $328.50, which represents a 36.4% increase in total from 2019. Moreover, the inability for consumers to eat at restaurants or even get takeout during the lockdowns drove an increased need for cooking at home, leading to what was described as “an unexpected increase in demand (and subsequently prices) for our fowl friends.” We’re talking a 40% increase in those two turtle doves, and 20% for the three French hens (though only 3.2% for the partridge in a pear tree, and the seven swans a-swimming).
Gold rings showed the correlation between commodities and consumer prices. PNC explains that at the onset of the pandemic in the spring, investors dashed for store-of-value assets, such as gold, and that—as the recovery went on over the summer, there were expectations that inflation was going to creep into markets. Gold traded up 40% from trough to peak, but has retraced some of that rally as the market recovered and inflation fears subsided. Oh—and no change in price for the five gold rings (adjusted for inflation level).
As for those live performers, those nine ladies dancing and their artistic counterparts were in short supply this year, though advocates for the arts are not out of options for the performance-lover on their nice list, as many performing arts organizations are holding virtual performances and are grateful for donations this COVID-19 Christmas.
That said, Santa’s sleigh will have plenty of help hauling presents, thanks to shipping services. Delivery companies are expected to play an integral role during this year’s pandemic, which is reflected in the additional travel and shipping costs factored into the PNC CPI internet prices. A tech-savvy True Love will spend an additional $4,186.95 when completing their shopping list online, paying a total of $20,355.09 for the ease of ecommerce convenience (although free shipping for livestock purchases is not an option just yet).
So, when you add it all up, the annual PNC CPI tradition includes calculating 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 $105,561.80, which means that spreading cheer throughout the year in 2020 costs 38% less than in 2019, given the exclusion of live performances.
However, the folks at PNC caution that we shouldn’t rush to call True Love a Scrooge just yet—as without a doubt, they will be on the hook for a number of “IOU’s” next holiday season when live performances resume.
Started in 1984 by a PNC predecessor bank in Philadelphia, the Christmas Price Index was developed for inclusion in a holiday message to clients. Now designed to share and educate all consumers, the PNC CPI continues to highlight market changes over time.
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