Luxury problems

Luxury restaurantPrice inflation on a range of luxury items in Switzerland ranging from caviar to cars has increased by 1.1% over the past year, says multi-family office Stonehage Group, suggesting that a life of luxury is becoming more expensive. The Swiss Consumer Price Index, meanwhile, measured an average deflation of 0.1%. The Swiss Stonehage Affluent Luxury Living Index covers a range of luxury goods. In 2012 it increased by 0.8% and by 1.2% in 2011. Although the cost of TGV tickets between Geneva and Paris, apartment rental in Zurich and caviar fell by approximately 9% over the past year, increases in the price of luxury shopping items, such as watches and handbags, high-end cars and champagne, offset this. Mark McMullen, executive director and head of Stonehage’s international family office division, says the findings show that it is still more expensive to be wealthy in Switzerland, partly because of a 2.4% fall in the value of the Swiss franc against the euro. “We may see consumers looking abroad in the coming year to get the best deals on luxury items,” McMullen says. ©2013 funds europe

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