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.
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.
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.
The Take Away
The probability is this news will never a
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.
If you are considering buying online you may be interested in reading the “How to choose a watch for your wrist size” article here.
Did you like this post? If you did, please share or like it so others know about it. If you don’t like it please tell me why. I’d love to know what you think.