Life is tough for Asia's millionaires. As if they didn't have enough on their plates with the Eurozone woes, the slowdown in China and the ongoing global recession, now the prices of their favourite luxury goods have soared nearly 9 per cent, over the last year. 

According to the Lifestyle Index 2012, published by Switzerland's Julius Baer, a basket of 20 luxury goods and services that represent discretionary purchases of high net worth individuals in Asia, rose 8.8 per cent for the year to April. This comes in the wake of a 11.7 per cent rise the previous year. 

The index covers high end vendor across four main cities: Hong Kong, Shanghai, Singapore, and Mumbai. The fact that the Index continues to rise shows clearly that the cost of living in luxury in Asia continues to substantially outpace conventional Consumer Price Index measures, which stood at approximately 6 per cent for the same time period, said Julius Baer. 

Mumbai saw the highest price rises, at almost 20 per cent, while Singapore prices saw the slowest growth. The most expensive single item increase was a business class airfare from Mumbai - up 51 per cent - while the largest decrease was also registered in Mumbai - a root canal surgery, also in Mumbai. 

The highest risers across all four cities were university fees at Oxford or Harvard. These have shot up 18.3 per cent within the last year, to an average US$60,363. Next on the list was a business flight to London or New York, which averages at US$7,211 this year, up 17.8 per cent on last year. 

A residential property in a top neighbourhood in one of the four cities now costs on average 12.8 per cent more than it did a year ago. Even a Chanel signature quilted handbag now retails at US$35,679, up 11.5 per cent on the previous year.

But for fans of Louboutin, the iconic red-soled shoes, there was good news. The price of a pair of classic pumps cost 6.1 per cent less this year than in 2010.  

"Certain items within the Index have pricing power strength, and demand appears to be unabated by price increases during these times of uncertainty," said the study, which was published as part of The 2012 Julius Baer Wealth Report. It also details how the global investing landscape has changed and what should be borne in mind when setting out to achieve longer term investment returns.

Stefan Hofer, emerging markets strategist at Julius Baer who was jointly presenting the report with Asia chief executive Dr Thomas Meier and North Asia head Kaven Leung, did not want to venture a prediction on next year's lifestyle index. However he said that he does expect the spread between Julius Baer's Lifestyle Index and the CPI index to narrow, suggesting that inflation in the luxury goods sector will continue to slow.  

The index is updated for 2012 inflation measures. It is Julius Baer's second edition.