The cost of living the good life in London is rising fast.
The price of buying a Patek Philippe, employing a housekeeper or getting a Botox treatment in London outpaced overall inflation in 2012, as the flood of rich people to London from the Middle East, Russia and other corners of the world drove up demand.
According to a report from Stonehage, a leading multifamily office that advises wealthy clients from around the globe, the cost of luxury living in London grew 4.9 percent in the 12 months ended in April. That's more than twice the rate of inflation for the broader U.K. economy.
The surge also follows a 1.6 percent decline in luxury living prices in the 12 months ended in April 2012, suggesting that demand for luxe goods grew over the past year. The Stonehage Affluent Luxury Living Index was launched in 2007 and was first developed by professor Geoffrey Wood of the Cass Business School.
"Consumer confidence among the ultrawealthy in London has risen, following a surge of wealthy families to the capital," said Ronnie Armist, executive director at Stonehage Investment Partners.
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