Sweden missed its inflation target last month, and Beyoncé concerts are to blame, according to Danish bank Danske’s chief economist.
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Due to cheaper prices in the Scandinavian country for the American singer’s Renaissance tour, several fans from all over the world came to Stockholm on May 10th and 11th.
According to NBC News, inflation in Sweden fell from 8.4% to 8.2% between April and May, below expectations of 7.8%.
Economist Michael Grahn tweeted that Beyoncé’s shows could explain this difference, particularly given the rate hikes hotels and restaurants have allowed themselves.
🇸🇪 Beyonce’s start of her world tour in Sweden seems to have affected inflation in May. How much is uncertain, but likely 0.2 percentage points of the 0.3 percentage points that hotels/restaurants added. Possibly also increased concert ticket prices (leisure time). Otherwise as expected.
— Michael Grahn (@MichaelGrahn1) June 14, 2023
“[Elle peut être expliquée] probably 0.2% of the 0.3% that hotels and restaurants added, he says. Perhaps also price increases for concert tickets. Without that, it’s similar to expected.
“Maybe it’s not just her, but if you think about the cause, she’s the number one suspect,” he said in an interview with NBC News.
However, a global economist at HSBC Bank disagrees, pointing out that while his studies could explain an 8.7% rise in hotel prices, the prices of food, travel and pets nationally would also play a role.
“While Beyoncé may have shocked the monthly data, she doesn’t explain Sweden’s inflation, which is well above the central bank’s target,” he explains.
Corporate bank Groupe SEB economist Marcus Widén agrees.
“As for hotels, I traveled in May and found that prices were high elsewhere than in Stockholm,” he told NBC News. I think it was a general pressure in this sector.
Artist Bruce Springsteen will perform three concerts in late June in the Swedish city of Gothenburg, which is much less populated than Stockholm, leading some to fear it will have a similar impact on the economy.