Inflation tops expectations in Sweden. Experts say Beyonce is to blame

Data from the Swedish govt showed that the high inflation in May was primarily driven by a rise in hotel and restaurant prices in the country; experts say it was due to Beyonce's Renaissance tour

One would think that Sweden's surprisingly high inflation in May, at 9.7 per cent, was due to supply chain bottlenecks or maybe, the ongoing war in Ukraine. But wait, experts believe it was the "Beyonce effect".

The data from the Swedish government showed that the above-expectation inflation in May was primarily driven by a rise in hotel and restaurant prices in the country. The annual core measure, which excludes energy prices, had fallen 0.2 percentage points between April and May. But restaurants and hotels added 0.3 percentage points. The recreation and culture category added another 0.2 percentage points.

According to Michael Grahn, an economist at Danske Bank, Beyonce's Renaissance tour in the country last month drove the demand for hotels and restaurants as thousands flocked to the Swedish capital Stockholm to attend the concert.

 

"Beyonce is responsible for the extra upside surprise this month. It's quite astonishing for a single event. We haven't seen this before," said Grahn, as reported by the Financial Times (FT). He estimated that the singer caused 0.2 percentage points of the rise in inflation.

It is estimated that the Stockholm concerts drew around 46,000 people over two nights. Fans came from countries as far as the US to attend the concert as Krona's low value against the US dollar made tickets a relative steal.

The tickets for the Stockholm concerts sold with a face value of between $60 to $140 each. For her Las Vegas shows, Ticketmaster prices for standard admission were between $91 and $689 each, FT reported.

Beyonce is on her first solo tour in seven years. According to a BBC report, it can gross almost 2 billion pounds when it ends in September.

The pop star is also scheduled to perform in Gothenburg at the end of this month. Some experts, including Andreas Wallstrom, head of forecasting at Swedbank, are worried that it might also have a similar effect.

Beyonce's Renaissance tour has already gone through several European capitals, including Brussels, Cardiff, and Edinburgh and five nights in London. She will perform for seven days in Germany, the Netherlands and Poland before moving to Canada and the US.

Her impact on the economy of other countries is, however, yet to be ascertained.