Chanel SA’s small Classic Flap bag was always a luxury item, but after three price hikes last year, it is selling for $8,200. That is up from the $5,200 it cost in 2019.
The French fashion house has been raising prices at a faster pace than other luxury brands, analysts say, prompting an outcry from some shoppers and testing their willingness to pay.
Companies from
Procter & Gamble Co.
to
have been raising prices to offset rising costs of raw materials, labor and transportation. Consumer prices for goods and services rose 7% in December, the fastest pace since 1982, spurring the Federal Reserve to begin raising interest rates in March.
A Chanel spokeswoman said the company regularly adjusts prices to take into account changes in production costs and raw materials, as…
