The PNC Bank “Christmas Price Index”

Learning Goals/Objectives:

• Define and use the
PNC Christmas Price Index and the Consumer Price Index.

• Distinguish between
the index price and true price.

• Analyze trends on
the PNC Christmas Price Index and the Consumer Price Index.

Overview:

Each year, PNC Bank publishes the “Christmas Price Index” as
an entertaining, simple way to introduce basic economic concepts. The change in
the prices of Christmas gifts, year over year, provides an excellent lesson on
inflation and other economic trends. Plus, similarities to the U.S. Consumer
Price Index make it a fun and easy way to study economic indicators –
specifically, changes in the price level.

This lesson uses the online version of the PNC Bank
“Christmas Price Index.

Activity Link: http://www.pncchristmaspriceindex.com/CPI/educators.html

Note: PNC releases its Christmas Price Index annually
on the Monday after Thanksgiving. For the most up to date (annual) information,
visit http://www.pncchristmaspriceindex.com

For more information about PNC Bank, go to: https://www.pnc.com

Grouping of Students:

Class discussion

Methods:

Analysis

Mathematics applications

Activities:

Go to the online lesson on the PNC Bank web page. http://www.pncchristmaspriceindex.com/CPI/downloads/StockMarketGame-09.pdf

This web page includes additional video
and print resources. A new version of
the Christmas Price Index is published by PNC Bank each December. The lesson will be edited to refer to the new
price data.

Materials:

Fact Sheet 1: The Twelve Days of Christmas

Fact Sheet 2: Recession Gives True Love Something to be
Happy About

Fact Sheet 3: PNC CPI Table

Activity Sheet 1: Consumer Price Index

Activity Sheet 2: Comparing Two Years

Activity Sheet 3: Comparing Two Indexes

Activity Sheet 4: Figuring Out Your Gift List