The prices of luxury goods and services used by ultra high net worth individuals based in London rose by 6 per cent in the 12 months to end of April, well ahead of the average UK consumer price inflation measure at 4.5 per cent over that period, according to multi-family office Stonehage.

The firm issued its latest Affluent Luxury Living Index; Stonehage said the data “reinforces findings that UHNW inflation is much more volatile than CPI, tending to exceed standard inflation in good times and significantly fall short in times of downturn”.

Among the biggest drivers of inflation this year is the rise in rental prices of high-end property in London, where costs jumped by 6.7 per cent. As reported in this publication and elsewhere, this trend is being driven by higher demand, particularly from foreign clients from regions such as the Middle East, Asia and Russia. A lack of available properties for sale is driving the rentals market, Stonehage said.

The rise in the costs of rented property contributed to a total increase of 5.7 per cent in the housing and family category, the report said.

The consumables category showed a strong rise of 18 per cent. The reported noted a rise in the value of the wine index, which tracks the price of fine wines – prices skyrocketed by 27.6 per cent year-on-year. Champagne was also impacted with prices rising by more than 8 per cent.

The culture and entertainment component of the index rose 10.3 per cent, with the art index rising by 10.5 per cent amid high auction prices.

The category for investments of passion, which included luxury car brands, was 4.7 per cent higher than a year ago.

Price increases in US dollar-priced items such as yacht hire, up 5.1 per cent on last year, helped to fuel a 5.4 per cent rise in the sports and recreation category.

Stonehage Affluent Luxury Living Index (SALLI) London, a proxy for price inflation experienced by London-based high net worth and ultra high net worth families, was first published in 2007.

The basket forms the basis of the index and consists of approximately 50 goods and services on a ‘per use’ weighted average basis. The basket includes items such as private education, central London rental costs for a family property, a day’s grouse shooting and fine wine and cigars, based on Stonehage’s knowledge and experience of the spending patterns of London-based UHNW families. Prices in the index are the recommended retail prices (including value added tax) and SALLI accounts for the frequency of purchase of each item over one year. Prices were recorded between 2002 and 2011.