Are you or your clients the sort who likes to indulge in a little vodka and caviar from time to time?
If so, you might be in for a nasty surprise – or, if you’re really loaded, a mild one – according to the new Coutts Luxury Price Index (CLPI), which measures how the price of high-end goods are rising.
‘Inflation in luxury goods is still much higher than the average return on cash, and is likely to remain so for the foreseeable future,’ said Sven Balzer, the bank’s head of investment strategy.
While wider inflation in May is hovering around 2.4%, according to the latest Consumer Price Index data, the CLPI puts inflation of high-end goods – ranging from fast cars to private school fees – at 5.5%.
But that is spread unevenly across sectors, so read on to find out whether your next mansion or Jag may be significantly more expensive.