Chinese luxury consumers have faced rising prices once again this year, especially in the areas of travel, liquor, and education, according to the latest Luxury Consumer Price Index from the HuRun report.
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HuRun, which calculates an alternative luxury price index for a basket of 62 high-end goods and services (32 of which are imported), said that while its index was down 2.79 percent from 2011, it was still 2.74 percent higher than China's national consumer price index.
And over the past six years, HuRun's luxury price index has outpaced the national consumer price index by 38 percent.
Of the nine categories measured by HuRun, luxury travel prices increased the most in 2012, up 11.92 percent from the previous year. Only one category, jets and yachts, grew slower than the national CPI. Luxury property was the only sector to see a drop in prices, but they have still doubled over a four-year period.
Two factors have played a significant role in the price increases—depreciated currency exchange rates and changes to import duties, HuRun said.
China's millionaire population continues to boom and seems largely unaffected by the luxury price increases. There are now 271 billionaires (in U.S. dollars) across mainland China, up from 189 the previous year. And there are 1.02 millionaires, an increase of 6.3 percent over the previous year.
More and more luxury brands are arriving in China, and have thrived despite major price hikes. The price of a classic Chanel bag has doubled between 2007 and 2012, and a Piaget Polo watch now costs 40 percent more than it did in 2008, according to HuRun.
The pink line shows how much the prices of luxury goods have increased since 2006, and the blue line shows the price increase of goods in China overall.
A night in the Presidential Suite at the iconic Peninsula Hotel Hong Kong cost $9,412 in 2011. Now it costs $12,657, a 34.4% increase.
Prices given in RMB have been converted to U.S. dollars.
Source: The HuRun Report
Two round trip, first-class tickets for 2 from Beijing to Paris now cost $3,937, up 11% from 2011.
Prices given in RMB have been converted to U.S. dollars.
Source: The HuRun Report
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