IT HASN’T SNOWED A SINGLE FLURY, BUT SANTA, DEAR, WE’RE IN A HURRY!

It’s that time of year again – when PNC Wealth Management releases its “Christmas Price Index” and we learn the cost of the gifts in the holiday classic “The Twelve Days of Christmas”. Each year I report on the Christmas Price Index in THE WANDERING TAX PRO – and now I will move this report to ANYTHING BUT TAXES.

According to the 23rd annual survey, the cost for “The Twelve Days of Christmas” for 2007 is $19,507, a 3/1% increase over 2006. PNC points out that this increase mirrors the US Consumer Price Index. The CPI is up 2.8% so far this year.
The cost of the individual items are:

* Partridge ($15) in a Pear Tree ($164.99)

* Two turtle doves ($40)

* Three French hens ($45)

* Four calling birds ($599.96)

* Five gold rings ($395)

* Six geese a-laying ($360)

* Seven swans a-swimming ($4,200)

* Eight maids a-milking ($46.80)

* Nine ladies dancing ($4,759)

* Ten lords a-leaping ($4,285.06)

* Eleven pipers piping ($2,213.40)

* Twelve drummers drumming ($2,397.85)

The price of the 5 gold rings is up 21.5% from 2006. According to PNC, this “reflects the general trend of increasing commodity prices in the Consumer Price Index, including gold, In addition, increased fears about inflation and the value of the dollar may have led investors to turn to gold as a safer place to invest their money.”

As “unskilled labor” the eight maids a-milking earn the minimum wage, which has finally been increased for the first time since 1997. Thanks to Congress, the cost of the maids is up 13.6%. This cost will also increase in 2008 and 2009, as the minimum wage increase was a 3-year process.

Most of the “skilled” labor, leapers, pipers and drummers, only saw a small 3-4% increase in their pay. The dancing ladies pay was the same as last year. As I point out each year, the performing artists’ union does a better job for its members than the musician’s union – as the dancers and leapers earn about twice as much as the pipers and drummers.

The price of the four calling birds (aka canaries) is up 25% and that of the six geese-a-laying is up 20% over 2006, while the price of the other birds (partridge, turtle dove, French hen, and swan) remained even with last year’s rates. Food prices have increased over the last year which has had an impact on birds traditionally served as food, like geese. The calling bird increase is a result of higher demand and increased shipping costs.

As part of the annual tradition, PNC also calculates the “true” cost of “The Twelve Days of Christmas” – the total cost of the items gifted as repeated in the verses of the song (i.e. on the 2nd day the giftee received 2 turtle doves and another partridge in a pear tree). The wealthy “True Love” in the song would pay $78,100 this year for all 364 items – up about 4% from last year’s cost of $75,122.

TTYL