The cost to provide the gifts required to fulfil the 12 days of Christmas has risen to $248,250, up from $227,500 last year – a cost increase of 9.1%.
Over the past year, investors have been buying gold as a hedge against global economic uncertainty, pushing the price of gold up from around USD2,070/ounce at the beginning of December 2023 to around USD$2,650 today, a rise of 31% over the last 12 months. This increase in the price of gold has resulted in gift of five gold rings increasing from nearly $2,450 per 18 carat gold wedding band this time last year to $2,900 for this Christmas season; not helped also by the slight depreciation of the Australian dollar that has occurred since December 2023.
Good news however with the cost of the flock of exotic birds required for the 12 days of Christmas has basically stayed flat over the year, despite stock-standard egg prices growing by just over 9% during the 12 months to September 2024. We note however there is a presumption of adequate local supply of some of these birds, which KPMG also appreciates may be incorrect particularly given the regulations around the illegal transport of native birds for commercial purposes without a permit.
KPMG's Chief Economist, Brendan Rynne
Day of Christmas |
Gift |
Days gift given |
Total gifts given |
2024 | 2023 | ||
| Price per gift | Total gift cost | Price per gift | Total gift cost | ||||
| 1 Partridge in a pear tree | Partridge | 12 | 12 | 5.84 | 70.05 | 4.39 | 52.72 |
| Pear tree | 12 | 12 | 250.00 | 3000.00 | 176.00 | 2112.00 | |
| 2 Turtle doves | Turtle dove | 11 | 22 | 115.21 | 2534.56 | 142.43 | 3133.43 |
| 3 French hens | Houdan chicken | 10 | 30 | 16.36 | 490.78 | 8.92 | 267.62 |
| 4 Calling birds | Canary | 9 | 36 | 70.00 | 2520.00 | 100.00 | 3600.00 |
| 5 Gold Rings | 18ct gold wedding band | 8 | 40 | 2880.00 | 115200.00 | 2441.81 | 97672.40 |
| 6 Geese a-laying | Goose | 7 | 42 | 70.00 | 2940.00 | 58.46 | 2455.14 |
| 7 Swans a- swimming | Swan | 6 | 42 | 2131.34 | 89516.13 | 2080.21 | 87368.82 |
| 8 Maids a-milking | Daily cost for minimum wage worker | 5 | 40 | 183.18 | 7327.20 | 176.56 | 7062.40 |
| 9 Ladies dancing | Daily cost for entry level dancer | 4 | 36 | 225.26 | 8109.36 | 217.12 | 7816.32 |
| 10 Lords a-leaping | Daily cost for principal dancer | 3 | 30 | 277.96 | 8338.80 | 267.92 | 8037.60 |
| 11 Pipers piping | Daily cost for live performance employee level 7 | 2 | 22 | 236.70 | 5207.40 | 228.14 | 5019.08 |
| 12 Drummers drumming | Daily cost for live performance employee level 11 | 1 | 12 | 249.16 | 2989.92 | 240.16 | 2881.92 |
| $248,244.20 (+9.1%) |
$227,479.44 |
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From a methodology perspective we note that KPMG has included the cost of a partridge in a pear tree as a bundled gift, whereas some interpretations 12 Days of Christmas include just the cost of a partridge. In this instance KPMG have interpreted the 12 days of Christmas literally and have therefore included pear trees within the basket of goods and services (and priced them at their short-run marginal cost); and we believe, on the basis that the spirit of Christmas should be interpreted as widely as possible, any other approach would to be Grinch-like in its perspective.
Further, we note we have also not included transport and courier costs in establishing the aggregate cost of providing the gifts for the 12 days of Christmas in so far as we have assumed the shipping costs associated with Santa and his reindeers are already embedded in the price of gifts, much like free postage and handling is included in some on-line purchases especially during the festive season.
Unfortunately, the cost-of-living relief packages subsidising electricity costs and providing additional Commonwealth rent assistance for low-income households have been unable to defray the cost increases associated with providing the gifts required for the 12 days of Christmas. KPMG notes this is unsurprising, given the Government policy responses to the current levels of high inflation have been targeted toward a range of goods and services that did not exist at the time the illustrated children's book, Mirth Without Mischief, was first published in London in 1780, which is where the words to the 12 Days of Christmas originated.
KPMG recommends that any cost-of-living reform being proposed within next week’s MYEFO aimed at helping improve the affordability of the 12 days of Christmas be temporary and targeted, with specific measures focused on increasing gold mining, the supply of additional pear trees and incentivising the hiring of farm hands, musicians and dancers.