Rising living costs force consumers to reassess luxury spending. Essentials like mortgage payments and household maintenance (e.g., repainting a beach hut, fixing a swimming pool’s cyanuric acid imbalance) strain budgets. Yet, some indulgences persist: premium shower gels (Cowshed, Soho House at £22-£32), hand-sliced smoked salmon, and artisanal chocolates (Läderach, Lindt, Fortnum & Mason’s ‘cats’ tongues’). These purchases, though pricey, offer emotional value—a ‘spa experience’ or ‘moment of indulgence’—that cheaper alternatives lack.

The Middle East conflict drives oil prices upward, exacerbating inflation. Economists warn this is just the ‘foothill’ of broader economic strain. Consumers adapt by substituting non-essentials (e.g., tap water over rosé) but resist cutting core luxuries. Aldi’s ‘hotel collection’ hand soap ($10) mimics Jo Malone’s prestige at 10% of the cost, while Harvie & Hudson shirts outperform mass-market alternatives in durability.

Cheese becomes a litmus test: supermarket varieties deemed ‘abominations,’ whereas aged Comté or similar cheeses justify splurges. Similarly, ‘well-chosen knockoffs’ (Aldi’s mandarin soap) deliver 90% of the experience for 10% of the price. Businesses like Cadbury and Aldi balance affordability with quality, but high-end brands thrive by anchoring perceived value.

The takeaway: not all luxuries are frivolous. They serve as ‘anchors of sanity’ in turbulent times. Companies that blend affordability with premium experiences—like Swiss chocolate makers or bespoke tailors—will retain market share. As one reader notes, ‘If I’m going to be broke, I’d prefer to smell expensively fragrant.’