The cost of luxury goods in Switzerland for high-net worth individuals was up 1.2% in the past 12 months, according to the Stonehage Group, a Swiss advisory firm (via FMAG).
In Switzerland, the overall consumer price index increased just .2% over the same period.
The price hike among luxury items was notable considering that prices for the same basket of luxury goods had decreased 6.2% over the two previous years, Stonehage said.
According to the firm:
The cost of luxury living increased, despite the continuing strength of the Swiss Franc against leading currencies which cut the price of many high-end goods for consumers. The currency linked price reductions of imported goods were counteracted by steep rises in living costs in Switzerland particularly in terms of the rental market.
During the year the Swiss Franc strengthened against the US Dollar by 21.1% and against the Euro by 10%, harming Swiss business exports and prompting the Swiss National Bank to peg the Swiss Franc against the euro.
Other key findings include:
- Residential property rentals in Geneva and Zurich were up significantly, with Zurich rentals edging ahead of those in Geneva for the first time since 2007.
- The biggest decrease was in the travel sector, where prices dropped by 5.6%, thanks mostly to the relative strength of the Swiss Franc.
- Prices on many imported luxury goods decreased. Cigar prices fell by 10%, and the prices of fine wine and champagne dropped by 4% and 11%, respectively.
Photo: Stonehage Group
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