US pop star Beyoncé has been accused of keeping inflation high in Sweden after choosing the country to launch her first solo world tour in seven years. But how did the pop diva manage to influence what is considered the most developed economy in the world?
The high flow of tourists increased demand for hotels and restaurants and kept prices high. The debut of the “Renaissance” tour consisted of two shows in midMay. It is estimated that each show brought together 46,000 people, says The Guardian, and many have had to stay away from the capital Stockholm, where the events are taking place. With greater demand, prices rose.
But not only Beyoncé is damaging the Swedish economy, which has been suffering from inflation for months. The peak was in December, reaching 12.3%.
From May 2022 to May 2023, cumulative inflation was 9.7%. In April, the same index was at 10.5%. There was an expectation that the annual decline would be larger, but this did not materialize.
The rise in inflation between April and May, the tour’s opening month, was 0.3%, according to the Swedish Bureau of Statistics.
Lower ticket prices attracted more tourists. According to the Financial Times, tickets in Stockholm cost around US$60140 (R$290670). In comparison, for the same show in the United States, in Las Vegas, tickets will range from US$91 to US$689 (R$440 to R$3,300).
Tourist demand meant that items measuring inflation did not fall more in price, in what has been dubbed the “Beyoncé Effect.” He was appointed by Michael Grahn, chief economist for Sweden at Danske Bank, says the BBC.
The implied drop in food and electricity prices didn’t have a major impact on the overall data.according to The Guardian and Agence France Presse.
Grahn told the Wall Street Journal the effect was “very rare” and expected the situation to return to normal in June.
The situation could repeat itself in July with the impact of the Bruce Springsteen concert. Some economists, like Andreas Wallstrom, head of Swedbank’s forecasting department, say other major events in the country could have a similar effect. Bruce Springsteen will perform three concerts in Gothenburg, Sweden’s second largest city, which could affect dates released in July.