Looking beyond Russia-Ukraine war or supply chain issues, Swedish authorities believe that the reason the country recorded higher-than-expected inflation in May is because of Beyonce.
The singer’s decision to kick off her Renaissance tour from Stockholm in May spurred massive demand for hotel bookings and meals which the economists blame for the rise in inflation by 0.2 percentage points..
According to data published by Statistics Sweden on Wednesday, the core inflation, which excludes energy prices, rose to 9.7 per cent in May.
The economists said that restaurants and hotels added 0.3 percentage points to the May figure, while recreation and culture contributed 0.2 percentage points.
Surprised with inflation figures
Experts had expected the inflation to hover around 9.4 per cent from 10.5 per cent in April. But they were surprised to find the Beyonce effect having that much impact on the country. The inflation in Sweden peaked at 12.3 per cent in December.
“Beyoncé is responsible for the extra upside surprise this month. It’s quite astonishing for a single event. We haven’t seen this before,” said Michael Grahn, Danske’s chief economist in Sweden, who said that the singer was responsible for the 0.2 percentage points inflation rise.
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The Beyonce effect
Major sporting tournaments often tip the scales on the higher side, but the economists said it was rare for a single event to do so.
In the middle of May, tens and thousands of fans descended to Stockholm to catch the two concerts that kicked off her first solo tour in seven years. Estimates peg the crowd at each concert to be at 46,000, with some forced to stay outside the capital as hotels filled up fast.
There were reports that a number of fans had travelled from overseas to see the shows, taking advantage of the weak Swedish currency and lower ticket prices.
In an interview to Wall Street Journal, Grahn said that the effect was “very rare” and he expected the situation to go back to normal in June.
But one economist told the Financial Times newspaper that Sweden might experience a similar inflation bump when Bruce Springsteen plays three nights of concerts in Gothenburg in June.
After Stockholm, Beyoncé moved through several European capitals including Brussels, Cardiff, Edinburgh and five nights in London. She has seven more dates in Germany, the Netherlands and Poland before moving to Canada and the US.
(With inputs from agencies)
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