What is The Christmas Price Index and Why Does it Matter?

The price of spreading holiday cheer just went up again.

The cost of buying all the gifts from “The Twelve Days of Christmas” has climbed to $51,476.12 this year, according to PNC’s annual Christmas Price Index released last month. That’s a 4.5% jump from last year and outpaces the broader inflation rate of 3% reported by the Bureau of Labor Statistics in October.

For Maryland families already grappling with rising costs, the increase adds another layer of financial pressure to an expensive holiday season. Recent surveys show Marylanders perceive inflation at 6.9%, nearly three times the actual rate, reflecting the real pinch consumers feel at checkout.

The PNC Christmas Price Index, now in its 42nd year, tracks the cost of True Love’s gifts using data from dance companies, hatcheries, pet stores and other sources across the country. While the index started as a lighthearted take on economic trends, this year’s numbers reflect real challenges facing consumers.

“This year’s increase reflects labor market pressures and economic uncertainty, not tariffs—True Love’s list is all domestic,” said Amanda Agati, chief investment officer of PNC Asset Management Group.

Five gold rings made the biggest splash, soaring 32.5% to $1,649.90. The jump mirrors broader gold market trends, where prices rose 45% through October as investors sought refuge from inflation concerns. A weakening U.S. dollar made gold even more attractive, adding to the surge.

Performance costs also jumped. The nine ladies dancing, ten lords-a-leaping, eleven pipers piping and twelve drummers drumming collectively increased 5.4%, following last year’s 7.9% spike. Rising wages and labor costs continue pushing service prices higher.

The pear tree saw a 14.3% increase to $400, driven by higher costs for land, labor and fertilizer. The partridge itself held steady at $20.18, but the combined partridge-and-pear-tree gift now costs $420.18.

Five of the twelve gifts saw no price increases this year. Turtle doves, French hens, calling birds, swans-a-swimming and maids-a-milking all remained flat compared to 2024.

The Baltimore-Columbia-Towson metro area has seen inflation ease to 2.8% as of August, lower than the national average. But that doesn’t tell the full story for Maryland families. While headline numbers have improved, housing costs remain elevated at 5.1% annually, well above the 4% national rate.

The perception gap between official inflation figures and what consumers actually feel has shaped spending decisions across the state. Forty-two percent of Marylanders say they think about inflation “all the time,” according to recent survey data, with another 34% considering it frequently.

Even shopping online offers little relief, with the total internet shopping bill reaching $55,748.05 despite a slightly lower inflation rate of 3.1%. Elevated shipping and packaging costs keep online prices higher overall. Anyone actually buying all 364 gifts mentioned in the song’s repetitive verses would face a bill of $218,542.98, up 4.4% from last year.

The index’s “core” version, which excludes the notoriously volatile swans, rose 6.1%. Interestingly, swan prices held flat this year after typically showing the most dramatic swings.

“With the Fed signaling looser policy, 2026 will reveal whether inflation finally cools or remains the lump of coal in holiday stockings,” Agati said.

PNC launched the Christmas Price Index in 1984 as a creative way to explain economic concepts to clients. The annual tradition has evolved into an educational tool that uses holiday whimsy to illustrate real market forces affecting consumers.

For Maryland families, consumer spending this holiday season is expected to reach record levels despite economic concerns, with the average person planning to spend $902 on gifts. But many shoppers report they’ll prioritize value, cut back on discretionary purchases, and shop earlier to find the best deals.

The complete breakdown and interactive charts are available on PNC’s Christmas Price Index website.