Beyonce’s concerts leading to inflation? Sweden seems to think so

Swedish bankers seeking to explain persistent price pressures have found an unexpected target: Beyonce. Economists at Danske Bank suggest that the singer's decision to kick off her world tour in Stockholm in May caused a surge in local hotel prices, subsequently leading to higher-than-expected Swedish inflation.

Thousands of fans from all over the world flocked to Stockholm for the opening two sold-out concerts of Beyonce’s Renaissance tour. Anecdotal evidence suggests that many attendees had to find accommodation outside of the city, resulting in significantly elevated prices.

Danske Bank's chief economist in Sweden, Michael Grahn, estimated that Beyonce's concerts were responsible for 0.2 percentage points of the inflation increase, as per a Financial Times report. Grahn expressed astonishment at the significant impact of a single event, noting that such an occurrence was unprecedented. 

Economists expect the effects of the inflation surge to subside in the coming month. However, some experts, including Andreas Wallstrom, head of forecasting at Swedbank, are apprehensive about the potential impact of future concerts in Sweden. Wallstrom specifically mentioned Bruce Springsteen's three-night performance in Gothenburg at the end of June, raising concerns about a similar effect on prices and inflation.

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Beyonce, known for chart-topping hits such as 'Halo', 'Crazy in Love', and her earlier work with Destiny's Child, is currently touring for the first time in seven years. This long-awaited return has sparked immense demand for tickets in Europe, and next month she will begin her tour in the United States. 

Numerous American fans have travelled to Sweden to take advantage of the weak Swedish krona and significantly lower ticket prices compared to those in the US. Tickets for Beyonce's Stockholm concerts were originally sold at face values ranging from SEK650 to SEK1495 (Rs 4,975 to Rs 11,430) each. In contrast, Ticketmaster prices for standard admission to her Las Vegas shows range from $91 to $689 (Rs 7,475 to Rs 56,600). Resale tickets in other US cities are selling for several times the original face value.

Official figures reveal that inflation in Sweden reached its highest point at 12.3 per cent in December. However, last month's rate of 9.7 per cent marked a decrease from April's 10.5 per cent. Financial markets had anticipated a slightly lower rate of around 9.4 per cent.