Rising inflation in various nations is often attributed by economists to a number of issues, including the current global economic slump, aggressive monetary policies by central banks, the conflict between Ukraine and Russia, and the ongoing demand-supply problem.
In-depth details on Sweden’s high inflation was attributed to Beyonce in May
However, in Sweden’s example, economists at a significant bank attribute higher-than-anticipated inflation to American singer Beyoncé. Yes, you did read that right.
According to a Financial Times story, economists at Copenhagen-based Danske Bank think that the singer’s decision to begin her world tour in Stockholm in May caused a spike in local hotel prices, which resulted in higher-than-expected inflation.
In May, consumer price index-based inflation in Sweden was 9.7%. According to statistics, the May figure was increased by restaurants and hotels by 0.3 percentage points and by recreation and culture by 0.2% points.
According to data from the Swedish government, costs have gone up for a variety of goods and services, including clothing, dining out, and lodging.
According to official government data, “additional contributions to the positive inflation rate came from clothing, household goods, recreational services, hotel and restaurant visits, as well as miscellaneous goods & services.”
Anecdotal evidence suggests that many of the 46,000 people in attendance each night had to stay well outside of the capital at astronomically expensive rates for the opening two sold-out concerts of the superstar’s Renaissance tour, according to the report, which noted that fans from all over the world travelled to the Swedish capital for those performances last month.
Chief economist for Danske Bank in Sweden, Michael Grahn, claimed that Beyoncé was to blame for this month’s additional positive surprise. that’s astonishiing considering that was just one event. This has never happened before.
He calculated that the singer contributed to an increase in inflation of 0.2 percentage points.
The well-known singer, whose songs include “Crazy in Love” and “Halo,” is embarking on her first world tour in seven years, and she has sparked a significant demand for tickets in both Europe and the US. She has given five-night performances as part of the tour in Brussels, Cardiff, Edinburgh, and London, among other major cities in Europe.
Before heading to Canada and the US, she has performances scheduled in Germany, the Netherlands, and Poland. With the exception of Sweden, none of the nations where she recently performed have seen an influence from her tour in their inflation data.
It is unusual for a single event to have such a huge impact, even if major athletic events routinely have an effect on macroeconomic indicators like inflation. However, some economists worry about future significant concerts in Sweden.
