Staggering 6 Percent Inflation On Luxury Goods

The luxury watch market may well be in recovery but a surprisingly high inflation rate against luxury goods across the board means a full recovery is in jeopardy.

The Financial Times

According to private bank ‘Coutts’, the Consumer Prices Index (CPI) has shown a 5.9 percent increase on the cost of luxury goods and services, compared to the 2.4 percent inflation, reported the Financial Times.

The system designed to track inflation takes into account luxury good such as clothes, hotels as well as other consumer goods such as cars and luxury watches. In their market research, private bank Coutts has used the same 12 categories used by the CPI has created an index of luxury goods and services that includes Kilgour suits, Aston Martin cars, Patek Philippe Calatrava, and wait for it, annual fees at Harrow School.

The results are surprising and wide spread, although having little to no effect on the day to day life of 99% of the population that don’t exist in the rarified heights of multi-million ivory tower. For example, the luxury food category rose by a staggering 17.9 % mainly due to a Chinese demand driving up the price of oysters, while house hold ‘de luxe’ goods rose 10% over a 12 month period.

Education

It’s bad news for the UK’s private education sector that has seen a tripling of the school fees over 20 years according to the Schools Council (ISC) and Office for National Statistics. This equates to a five year education now costs on average £156,000 compared with £48,500 back in 1996.

Reasons for the increase has been attributed to an increase in facilities made available, staff costs, and a tangible increase in the demand for British schooling. What ever the reason, the cost of perceived excellence is sky rocketing, leaving even the well off looking for ways to save money.

Property

The biggest shock is the drop in the property category, seeing a drop off of 0.2% over the year prompted by a discount in house prices in London’s wealthiest areas via a stamp duty reform. Interestingly homeowners in this high net worth bracket aren’t shy when it comes to splashing out on luxury household goods such as Aga cookers and high-end furnishings.

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The Take Away

The probability is this news will never affect us, but what is interesting to note and keep in mind is that luxury goods across the board are at risk of higher than expected inflation. With this in mind, it’s never been a better time to take advantage of the grey market sector of discount watch stores.

So, if you’re looking for the perfect Watch at the perfect price, from a trusted source, you know it can be a stressful experience, with the right help and advice, you too can find your dream timepiece. As I’m considered an expert in my field and I write for other publications like Wrist Review I know you’ll benefit from my experience and avoid the pitfalls.

Read My Best Discount Watch Stores Reviews

Read The Online Watch Buyers Guide

If you are considering buying online you may be interested in reading the “How to choose a watch for your wrist size” article here.

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carl scutt
carl scutt
Carl's the founder and editor of discountwatchstores.com. His background's in Technology and Internet Marketing. He currently lives in southern Spain. Learn more about him here, and connect with him on Twitter, Facebook, Google+.

About carl scutt

Carl's the founder and editor of discountwatchstores.com. His background's in Technology and Internet Marketing. He currently lives in southern Spain. Learn more about him here, and connect with him on Twitter, Facebook, Google+.

One Reply to “Staggering 6 Percent Inflation On Luxury Goods”

  1. Beware of buying a watch on Authenticwatches.com. They sell grey goods, the watchmakers warranty is void and the watchmaker can not assure you when buying from them that the watch is new or genuine. The website Authenticwatches.com while pretending to be owbn by Authenticwatches.com, Inc is actually owned by Tranik Enterprises, Inc. In 2005 They specifically filed to change their legal name from Authenticwatches.com, Inc to Tranik Enterprises, Inc.

    Here is a question you need to ask yourself: What valid reason could a business have for changing their legal name to something entirely different and then continue to use their old business name, and not list their legal name anywhere on the website, documents, or anywhere, anyone can find it.

    Before buying checkout and read the complaints on the better business bureau:

    https://www.bbb.org/us/ca/moorpark/profile/jewelry-stores/authenticwatchescom-1236-92003976/complaints

    Read about the guy who thought he was buying a new Rolex watch but it came missing all stickers and AW refused to take it back.

    Here is AW’s response “Client claims to have received timepiece in a condition other than what was advertised. At no point in time was the timepiece advertised as “new” nor “brand new”. At no point in time was the timepiece advertised to come with factory stickers.”

    There are many more horror stories on the BBB and other site. Just spend a few minutes searching before you buy. Buyer beware!

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