Luxury consumer price index rises 89% over 12 years

Maldives topped the list of most desirable travel destinations. [Photo/China.org.cn]

The consumer price index for China's wealthiest people increased 4.1 percent in June 2018 on a yearly basis, far higher than the 1.9 percent growth of the index among all people in China in June, according to the 2018 Luxury Consumer Price Index released Sept 6 by the Hurun Research Institute.

This marks the 12th consecutive year that Hurun has released such a report, which showed the index for China's richest individuals went up by 89 percent since 2006, more than double the general CPI, said Hu Run, founder and chairman of the Hurun Report.

Prices for high-end alcohol, tobacco and tea witnessed the highest jump of 12 percent this year, compared with the 2.6 percent growth last year, while luxury tours rebounded 8.5 percent in 2018 despite a small decline in 2017. Costs for education at top universities, which have continued to rise over the past 12 years, are up 8.1 percent, topping the past decade.

High-end accessories and skin care products saw a 7.2 percent price increase this year, while the cost for leisure goods climbed 5.6 percent. Watch and jewelry costs have kept growing this year at 3.8 percent, while real estate has cooled down compared to last year's 16.6 percent growth with a slight uptick of 3.4 percent, a major decrease that analysts attribute to the exchange rate and macro control.

The cost of luxury automobiles rose 3.1 percent this year, while healthcare and housekeeping perked up modestly at 1.8 percent. Wedding celebration services continued to drop in price at 2.7 percent, and the cost of yachts and planes fell 5.9 percent this year.

According to the report, 39 percent of the 108 sample items are imported commodities. Hu Run said people can buy more goods from Europe and North America, thanks to the appreciating yuan compared with the same period last year.

Hurun's 2018 Millionaires Brand Tendency Report noted real estate remains the major investment method for high net worth individuals (HNWIs) in 2018, with 14 percent to increase investments in the overseas real estate market in the next three years.

The brand tendency report also revealed that Apple is still the favorite brand for gifts, followed in fifth place by the luxury liquor maker Maotai, the only Chinese brand ranked in the top 10 gift list. Sailing is the second most popular leisure activity that HNWIs want to experience in the next three years, right behind horseback riding.

Swimming, golf, running and badminton are the top four favorite sports for male HNWIs, while swimming, yoga and running are most preferred by female HMWIs.

Maldives topped the list of most desirable travel destinations, with Japan rising three positions to second place this year, and the United States sliding to sixth. Sanya city in South China's Hainan province remained the travel destination in China with the most appeal for seven consecutive years, said the brand tendency report.

According to the Hurun Fortune Report 2017, the number of rich families owning property worth 6 million yuan ($877,706) or above reached 3.62 million by Jan 1, 2017, with 1.27 million families having 6 million yuan of investible assets. High net worth families with 10 million yuan or above in property increased 9.7 percent to 1.47 million, including those with 10 million yuan of investible assets.

Super high net worth families with property of at least 100 million yuan grew 11.6 percent to 99,000, with 59,000 of them owning 100 million yuan investible assets. International super high net worth families owning $30 million property jumped 13.3 percent to 65,000, including 39,000 families having $30 million in investible property.