Luxury brands responded to that willingness (or, if you want the companies’ line, to rising costs of labor and raw materials) by jacking up their prices further and faster than most of their customers could have imagined possible. A report from HSBC Holdings Plc found that the prices of luxury goods in Europe increased an average of 54% from the end of 2019 through September 2024, far outpacing inflation. Some of the most sought-after items soared even higher: In 2019 a medium-size Chanel Classic Flap bag—one of the most popular and recognizable designs in fashion history—cost $5,800 in the US. At the beginning of 2025, the same bag would have set you back $10,200.