Here’s another clue that inflation has been going nowhere.
PNC released its annual Christmas Price Index on Monday, which rose just 0.6% for 2015.
Back in 1983, PNC first measured the cost of everything in the ’12 days of Christmas’ song to entertain their clients during the slow holiday weeks. And every year since then, a team of economists has come up with an index of the price changes as a fun way to help people understand how this aspect of economics works.
Because commodity prices have tumbled in the past year, the cost of most of the 12 things were unchanged year-on-year, reflecting the trend in the real government consumer price index.
The cost of five gold rings was also unchanged, surprising PNC economists the most as actual gold prices have fallen more than 10% in 2015.
But of course, we shouldn’t seriously compare fictitious gold rings to real gold. The “core” Christmas price index, which excludes volatile costs of swans, was 1%.
Here’s a table with all the price changes:
And here’s an infographic: