1. The Christmas Price Index
EC.3.3: Students will be able to identify the measures used to asses economic performance.
Learning Target:
I can explain inflation as an indicator of economic health. I can show I understand by graphing, comparing past and present prices of the items found in “The 12 Days of Christmas”

2. Warm-up
What do you think an index named the Christmas Price Index would measure?
How might you use it in making decisions as an investor?

4. CPI…Remember???
CPI is the economic indicator compiled by BLS that tracks changes in the overall price changes in basic consumer goods/services.
It is a good gauge for inflation.
Lawmakers will use it to make changes to SS, Medicare, minimum wage, tax brackets, etc.

5. CPI % Change
Year Total Price % Change
2014 $27, %
2013 $27, %
2012 $25, %
2011 $24, %
2010 $23, %
2009 $21, %
2008 $21, %
2007 $19, %
2006 $18, %
2005 $18, %
2004 $17, %
2003 $16, %
2002 $14, %
2001 $15, %
2000 $15, %
1999 $14, %
1998 $14, %
1997 $13, %
1996 $13, %
1995 $12, %
1994 $15, %
1993 $15, %
1992 $15, %
1991 $15, %
1990 $15, %
1989 $14, %
1988 $13, %
1987 $13, %
1986 $12, %
1985 $12, %
1984 $12, N/A
What does this chart tell us about the total prices on the PNC Christmas Price Index?
When was it at its highest?
Its lowest?
Do you see any patterns in the changes in total price?

6. Activity Sheet 1: The Total Price Christmas Story
Graph the percent change and year
Year – X-AXIS
Percent – Y-AXIS
Don’t forget to consider the highest and lowest (positive and negative) percentage changes when setting up your graph!!!!

7. Activity Sheet 1: The Total Price Christmas Story
What might cause the price of the same gift purchased each year to rise and fall over the years?
How do you think knowing the changes in the Total Price of the Christmas Price Index might help investors?

8. Activity Sheet 2: Estimate the Christmas Price Index
Go to
Click on “Explore”
Click on “Gift Prices”
After completing Activity Sheet 2, go back to Activity Sheet 1 calculate the percent change from 2104 and plot the 2015 data