Friday, December 01, 2006

Christmas Inflation: 3.1 percent

In the spring in Ec 10, we will discuss how economists measure inflation using price indexes. Here is an offbeat example:

The cost of "The Twelve Days of Christmas" is on the rise - again.

Buying each item in the song just once - from a partridge in a pear tree to 12 drummers drumming - will cost you $18,920, or 3.1% more than last year, according to PNC Financial Services Group.

The total cost of items gifted by a True Love who repeats all of the song's verses costs more than ever before - $75,122 - for all 364 items, up from $72,608 in 2005, a 3.5% increase.

While prices for the partridge, two turtledoves, three French hens, six geese and seven swans remained the same as last year, higher wages made the lords a-leaping, ladies dancing and pipers piping costlier. The maids a-milking, however, make the federal minimum wage, which has been $5.15 per hour since 1997.

From the NY Daily News.