• by Sarah Mahoney  @mahoney_sarah, May 4, 2011

The rich aren't just back, they're really back: Worldwide spending on luxury goods is expected to increase 8% this year, according to the latest forecast from Bain & Co.

Fueled by strong spending in the U.S., Europe, Brazil, Russia, China and the Middle East, the report forecasts luxury spending of 185 billion euros, or about $275.4 billion, up from 172 billion euros last year. And 2010 actually came on stronger than many expected, with a 14% jump in luxury goods in the fourth quarter pushing sales past their pre-recession levels. For 2010, sales totaled 172 billion euros—busting past the prior peak of 170 billion in 2007.

From 2008 to 2009, the affluent cut back sharply, with luxury sales plunging 17%.