‘Lipstick effect’: Britons turn to small luxuries in cost of living crisis

British consumers are turning to small luxuries such as Estée Lauder lipsticks in the downturn. Photograph: Bloomberg/Getty Images

The shadow cast by the cost of living crisis has spurred a retreat into small luxuries with Britons cheering themselves up with mood boosters such as luxury lip balms and false nails as well as chocolate and coffee.

The lipstick index, coined by Estée Lauder’s Leonard Lauder, is the idea that sales of affordable luxuries rise in economic downturns. This spending behaviour has been true during previous downturns and the same picture is emerging again as consumers battle severe financial headwinds.