PNC's 2025 Christmas Price Index: Costs Rising for Holiday Season

PNC's 2025 Christmas Price Index: The Rising Cost of Holiday Cheer

As the season of festivities approaches, the costs associated with celebrating Christmas are once again on the rise. PNC Bank has released its 42nd annual Christmas Price Index (CPI), which serves as a whimsical evaluation of the price changes consumers face while purchasing the gifts highlighted in the festive carol, "The Twelve Days of Christmas." This year, the PNC CPI shows a notable increase of 4.5% compared to last year, far exceeding the Bureau of Labor Statistics' Consumer Price Index (CPI), which recorded a yearly increase of just 3.0% as of October 2025.

The PNC Christmas Price Index, a tradition dating back to 1984, captures the whimsical and surprisingly serious nature of holiday economics. It calculates the total cost of purchasing the gifts from the classic carol using data from various industry sources, including performance groups, hatcheries, pet stores, and more. This year, the cumulative cost for the 12 gifts from the song has reached an impressive $51,476.12.

Economic Influences Behind the Increase

Amanda Agati, the chief investment officer at PNC Asset Management Group, indicated that this surge in Christmas expenses can be attributed primarily to economic uncertainty and ongoing pressures within the labor market, rather than trade tariffs. Since all items in the index are sourced domestically, the impact of international trade fluctuations is minimal in this assessment.

One of the standout increases in the index is for the gift of "Five Gold Rings," which has skyrocketed by a staggering 32.5% year-over-year. This spike is influenced by external economic factors, including the rising value of gold, which jumped 45% as of late October 2025. The increased demand for gold among investors seeking refuge from inflation has also raised its retail costs significantly, making it one of the largest contributors to the overall increase in the CPI.

For those looking to purchase gifts in bulk, the "True Cost of Christmas," which refers to the total cost of acquiring all 364 gifts mentioned in the song across its repetitions, has seen a 4.4% increase, bringing it to $218,542.98. While tech-savvy shoppers can take advantage of lower inflation rates of 3.1% by shopping online, the total bills still remain higher due to escalating shipping and packaging costs associated with e-commerce.

Trends in Holiday Gift Prices

In addition to gold rings, the prices of various performers highlighted in the song, such as the "Nine Ladies Dancing" and "Ten Lords-a-Leaping," have risen by an average of 5.4%. This was an encore to last year’s increase of 7.9%, demonstrating a consistent trend in the entertainment sector as demand for live performances continues to drive prices up.

Despite some increases, not all gifts have followed this upward trend. For example, prices for the "Two Turtle Doves," "Three French Hens," and several other items remained stable compared to last year's figures, showcasing a mixed bag of inflationary pressures throughout the index.

Notably, while the price of "One Partridge in a Pear Tree" rose 13.5%, this increase can be attributed to soaring costs associated with land, labor, and fertilizers rather than a spike in demand. This once again reflects broader trends in the housing market, as property values continue to climb despite a decrease in mortgage rates.

Looking Ahead

As we head into 2026, uncertainty looms regarding whether inflation will stabilize or further impact prices. While indicators from the Federal Reserve suggest a possibly looser economic policy, the full implications for holiday costs in the coming year remain to be seen. Agati's remarks capture the sentiment well: "With the Fed signaling looser policy, 2026 will reveal whether inflation finally cools or remains the lump of coal in holiday stockings."

For those interested in delving deeper into this lighthearted yet revealing economic analysis, PNC has made their interactive Christmas Price Index website available, combining educational elements with festive cheer. The PNC Christmas Price Index continues to be a unique indicator of holiday spending patterns, drawing attention to the joyous yet often costly nature of Christmas giving.