The Consumer Price Index, commonly referred to as CPI, is defined by the Bureau of Labor Statistics as the average change over time in prices paid by urban consumers for a variety of consumer goods and services. Published monthly, the CPI is an economic indicator that is typically used as a measure of inflation to help guide leaders making economic and financial decisions.

Prices for the goods and services used to calculate the CPI are collected in 75 urban areas throughout the country, including the Cincinnati MSA, and from around 23,000 retail and service establishments. The commonly reported CPI number is called CPI-U or Consumer Price Index for All Urban Consumers, which covers approximately 93 percent of the U.S. population.

In November 2024, the CPI increased 0.3% versus October 2024, translating to a year-over-year increase of 2.7%. Removing food and energy, which are often impacted by different factors than regular consumer goods and are therefore more volatile, the CPI increased 0.3% versus October and 3.3% year-over-year.

As a fun educational tool, PNC Bank publishes a yearly “Christmas Price Index” which analyzes the price changes of the 12 gifts represented in the famous holiday song “The Twelve Days of Christmas.” Published since 1984, the PNC CPI looks at each gift individually, the total of all 12 gifts, and the impact of purchasing 364 gifts (i.e. buying the gifts with all the song verses repeated!). A “Core” Index also excludes the 7 swans-a-swimming due to the volatility in swan prices.

Standouts from this year’s list include a partridge in a pear tree, which increased by 16% for a total of $370.18, and a 15.8% increase for both the 11 pipers piping and 12 drummers drumming, which will cost you around $4k for each group, driven by higher labor costs for entertainers including musicians. Conversely, the infamous 5 gold rings will cost you $1,245, which has remained unchanged for the second year in a row after 5 years of price hikes. The total price of one set of each of the gifts in the song is $49,263.47, representing a 5.4% increase from 2023 and the third-largest increase in the last 10 years, highlighting the continued challenge of inflation.