Beyonce's concerts blamed for higher inflation in Sweden, economists say

Swedish economists have attributed the higher-than-expected inflation in May to the influence of pop superstar Beyonce.

In a report on The New York Times, a senior economist suggested that the twin concerts held by Beyonce in Stockholm last month may have contributed to the rise in Swedish inflation.

The renowned music icon launched her Renaissance World Tour in Stockholm on May 10 and 11, attracting music enthusiasts from around the globe. The influx of fans to the Swedish capital drove up prices for hotel rooms and restaurant reservations. With estimated crowds of 46,000 attendees at each concert, hotels quickly reached full capacity, forcing some concertgoers to seek accommodations outside the city.

Data from Statistics Sweden indicates that Sweden reported higher-than-expected inflation of 9.7 per cent in May, a slight decrease from April's 10.5 per cent. The monthly inflation rate in Sweden rose by 0.3 per cent points from April to May, partly due to various factors, including hotel and restaurant visits, recreational services and concert tickets.

Michael Grahn, Danske Bank's chief economist in Sweden, explained in a tweet that Beyonce's tour start in Sweden likely contributed 0.2 percentage points to the overall 0.3 percentage point increase attributed to hotels and restaurants. The data showed that restaurants and hotels accounted for a 0.3 percentage point contribution to the May inflation figure, while recreation and culture added 0.2 percentage points.

🇸🇪 Beyonce's start of her world tour in Sweden seems to have coloured May inflation, how much is uncertain, but probably 0.2 p.p. of the 0.3 p.p that hotels/restaurants added. Perhaps also hiked concert ticket prices (recreation). Otherwise as expected.

1/ pic.twitter.com/GZgjqDBK6y

— Michael Grahn (@MichaelGrahn1) June 14, 2023

Official government data confirmed that the positive inflation rate was additionally influenced by clothing, household goods, recreational services and miscellaneous goods and services.

The Washington Post reported that visitors from the United States, Germany and Britain made up the largest number of bookings in the city, taking advantage of the weaker Swedish currency and relatively lower ticket prices. Beyonce's Renaissance World Tour is her ninth concert tour, featuring her popular hits like "Halo", "Crazy in Love", "Single Ladies", "Run the World" and "Bills, Bills, Bills".

Economists also anticipate a similar inflationary impact when Bruce Springsteen performs three nights of concerts in Gothenburg in June, as per a statement made to the Financial Times.

Economists at Danske Bank believe that the Beyoncé’s decision to start the #RENAISSANCEWorldTour in Stockholm in May led to a surge in local hotel prices that in turn meant Swedish inflation exceeded expectations. pic.twitter.com/up5KIBZmco

— RENAISSANCE World Tour (@RenaissanceWT) June 14, 2023