Chanel bag prices have gone up

The much-coveted Chanel bags have always been an investment buy. With prices well over £1,000, for most of us they're a buy now, wear for ever purchase rather than a seasonal indulgence - if we can afford one at all. But now we're going to have to save for even longer to buy one.

On 1 July Chanel stores across Europe increased its bag prices. Where once you could snap up a small, classic black 2.55 for £1,600, you now have to find £2,045. That's quite a price hike, not to mention quite an investment, even for something that you'll happily hand down to your children in years to come.

So why the dramatic rise? It could be due to demand or an increase in production costs, but a source told US blog Madison Avenue that, 'We want Chanel to stay a lux item and not be Main Street.'

Chanel isn't alone in offering up bags that cost thousands of course - a quick visit to Net-A-Porter reveals pieces by Fendi, Lanvin, Chloe and YSL all for upwards of £1,500 - and many of them are sold out.

So how much is too much to pay for a designer bag?