The luxury lifestyle, characterized by its lavish amenities and exclusive commodities, continues to climb in expense. According to a recent analysis, the Cost of Living Extremely Well Index (CLEWI) has seen a 4.7% increase this year, outpacing the broader Consumer Price Index, which settled at 2.7%. Despite easing inflation for the super-rich, the prices for ultra-luxurious items remain significantly higher, driven by factors such as increased raw materials and labor costs.
This year, the CLEWI, which has been an indicator of the high-end market for over 40 years, reported a lower increase compared to the previous years, yet still surpassing the general economy’s inflation rate. Among the notable spikes, a 60-foot Oyster 595 sailing yacht now commands $3.9 million, marking a substantial 25% rise from the prior year. Meanwhile, other indulgences such as a week’s retreat at California’s Golden Door spa have climbed by 8.4%, and a pair of Gucci loafers has increased by 14%.
Not all items have surged in price, however. The cost of a kilo of Ossetra caviar from Petrossian remains steady at $12,980, as does a 45-minute session with a psychiatrist on New York’s Upper East Side, holding firm at $500. However, the wealthiest Americans, notably those on The Forbes 400 list, who have collectively amassed a $5.4 trillion net worth this year, are less impacted by these price hikes.
In the realm of entertainment and luxury items, the costs depict varied trends. Tickets for a series of performances at the Metropolitan Opera now reach nearly $6,000, barely changing from the previous price. A Steinway & Sons concert-grand piano sees a marginal increase of 3%, costing $223,900. On the other end of the spectrum, the price of a new Amels 60 motor yacht remains unchanged at $63 million, while a matching pair of James Purdey & Sons sporting shotguns have gone up by 8.9%, costing $371,289.
Fashion enthusiasts face their own set of price adjustments. A vintage Alhambra long necklace by Van Cleef & Arpels has risen slightly by 2.5%, costing $122,000. Custom-made men’s shoes by John Lobb see a 7.4% price rise to $7,000. In contrast, the price of a black wool crepe dress by Gucci is newly listed at $3,700. A selection of bespoke cotton dress shirts by Turnbull & Asser experiences a significant 19.2% price jump, further indicating fluctuating luxury trends.
Food, one of the ultimate symbols of opulence, shows moderate price changes. While catered dinners and high-end caviars maintain their rates, a case of Krug Vintage Brut Champagne has become more expensive by 5.3%, now priced at $2,940. The tasting menu at a renowned New York restaurant, Le Bernardin, also sees a 5.2% increase to $505 per person, including wine pairing but excluding gratuity.
Household goods and services, essential to maintaining a luxurious lifestyle, also reflect varied increases. While custom flower arrangements and sterling silver flatware see moderate price rises of around 3%, items like an Olympic-size swimming pool have surged by 15%, now costing over $5 million. Luxury services such as a spa retreat at Golden Door and university tuition for places like Harvard have also seen notable increases.
In summary, while the general economy shows signs of easing inflation, the expenses associated with living a billionaire lifestyle continue to ascend. The CLEWI, though experiencing a minor decline in percentage growth, remains ahead of the average inflation, indicating that the pursuit of luxury remains a progressively costly endeavor. Even as some prices hold steady, the overall trend reflects an ongoing increase, making this exclusive lifestyle an ever-pricier pursuit.
Source: Forbes
