In the last 12 months, the prices of luxury goods and services in London has risen about 6pc, against an inflation rate of 2.3pc, according to a survey by wealth management adviser The Stonehage Group.
Well, you wouldn\’t want their standard of living to fall would you?
Every class of Briton seems to experience a higher rate of inflation than the real one. There seems to be three possibilities – 1) all these studies decide their conclusion in advance then pick their goods, 2) the rate of inflation is a lie, 3) there are a few people in the economy who are doing really, really, well from falling prices (IT geeks?), and don’t shout about it so no-one realises.
Tim adds: 1) Yes. 2) No, an average. 3) See Baumol’s Cost Disease.
Well it could be (2). Some of your wackier commenters think it’s 10% or more.
Sounds like too many pounds chasing too few goods.
Carolyn Kay
MakeThemAccountable.com