Startling and dismaying for the romantic at heart — especially so considering the price has increased an astonishing $8,509, or 10.9%, over last year, according to the 24th annual “Christmas Price Index” compiled by PNC Wealth Management.

Similar to the Labor Department’s calculated Consumer Price Index (CPI), which is the most watched government inflation barometer, the tabulated PNC CPI offers insights into rising (or falling) prices and the economy. However, while the government’s annual CPI dropped to 3.7% in October, the PNC CPI registers at 8.1%.

The biggest price killer was the seven swans a-swimming, coming in at $5,600 and accounting for most of the increase. Should lovers "forget" the swans?

"Omitting the seven swans a-swimming may be a tempting way for a True Love to hold the line on costs, but one would be advised to proceed with caution," warned James Dunigan, managing executive of investments for PNC Wealth Management.

"Because our analysts can only measure the actual cost of this seasonal treasure, not its sentimental value, True Loves may want to budget a little more carefully this year in order to purchase all the items in the song," Dunigan said.

The good news? Romantic love could (maybe) get by with gifting one of each item instead of gifts for each repeated verse, reducing the total price tag down to $21,080.

Here is list showing how each item increased over 2007.

1. Partridge in a Pear Tree – up 33.3%
2. Turtle Doves – up 37.5%
3. French Hens – down 33.3%
4. Calling Birds – up 0.0%
5. Golden Rings – down 11.4.5%
6. Geese A-Laying – down 33.3%
7. Swans A-Swimming – up 33.3%
8. Maids A-Milking – up 12.0%
9. Ladies Dancing – up 0.0%
10. Lords A-leaping – up 3.0%
11. Pipers Piping – up 3.2%
12. Drummers Drumming – up 3.2%

For a full accounting for the price of true love, visit the PNC Christmas Price Index at: http://www.pncchristmaspriceindex.com.

The latest rate is the lowest since 2004 and joins a new round of global cuts. China and Norway also cut rates on Wednesday, and other countries are expected to follow suite in an attempt to change the economic downturn and fight the ongoing crisis in the credit markets.

The Feds newest reduction follows on the heels of its emergency 1/2 percent interest rate cut on October 8 when world central banks first joined in their coordinated efforts to try to stabilize financial markets and ease out of the global credit crunch.

Today’s move was widely expected, although a minority of analysts suggested the Fed could cut rates by three-quarters of a percentage point to 0.75 percent, marking a never before seen low. Immediately following the announcement, U.S. stocks inched lower.

The announcement was made by the Federal Open Market Committee (FOMC), who released the following statement:

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.

The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.

In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability.

Recent policy actions, including today’s rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth. Nevertheless, downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 1-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, and San Francisco.

The fed funds rate is used to set rates for a wide variety of consumer loans, including home equity lines, credit cards and many business loans. The Fed hopes to spur the economy with the lower rate.

Low rates can also feed inflation, which the U.S. was battling just in July when inflation had grown at its fastest pace in 17 years. However, with drastically falling energy and commodities prices, inflationary pressures have significantly weakened.

The need to spark credit easing has become the Federal Reserve’s main focus, even though inflation is still higher than the Fed’s optimal 1.5 percent to 2 percent comfort zone. Inflation pulled back to 4.9 percent in September and is expected to lower in October.

The FOMC’s next scheduled meeting is on December 16.

As expected Thursday, the central bank’s Governing Council left its benchmark interest rate at 4.25%. But statements by ECB President Jean-Claude Trichet focused on declining economic growth.

“Economic activity in the euro area is weakening with contracting domestic demand and tighter financing condition,” Trichet said. “The economic outlook is subject to increased downside risks.”

In a CNNMoney.com article, editor Paul La Monica wrote,

Although the U.S. economy is in bad shape now, the fact that Europe’s economy is also taking a hit, could help alleviate some of the inflation pressures that have taken a big bite out of consumers’ wallets this year.

Why? Should the ECB lower rates in an attempt to stimulate European economies, the US dollar is likely to benefit with stronger gains against the euro and other currencies. That would reduced costs of imported goods, like oil and other commodities.

In the same article, Yanick Desnoyers, senior economist with National Bank Financial in Montreal, was quoted as saying,

“The fact that the dollar is increasing again is good news regarding import price inflation,” he said. “It is easier to control inflation when your currency is rising.”

Desnoyers predicts oil could fall as low as $80 per barrel over the next year. Lower commodity prices on their own can greatly impact inflation.