Beyonce's "Renaissance Tour" concert in Stockholm boosted Sweden's inflation, Danske Bank's chief economist discloses.
Danske Bank chief economist, Michael Grahn, says Beyonce's tour may have increased the inflation rate in the country last May.
Beyonce's Concert Blamed for Sweden's High Inflation
(Photo : Emma McIntyre/Getty Images for The Recording Academy)
LOS ANGELES, CALIFORNIA - FEBRUARY 05: Beyoncé accepts Best Dance/Electronic Music Album for “Renaissance” onstage during the 65th GRAMMY Awards at Crypto.com Arena on February 05, 2023 in Los Angeles, California.
As per a report by Forbes, Beyonce's "Renaissance Tour" concert in Stockholm may have caused inflation to spike in Sweden after thousands of fans flocked to the country last month.
Michael Grahn, chief economist for Sweden at Danske Bank, said that the concert "probably" increased the inflation rate more than what was expected. He notes that Beyonce's tour may have contributed to roughly 0.2 to 0.3 percentage points to the country's skyrocketing inflation.
In April, Sweden's inflation rate was at a staggering 10.5 percent. But in May, it fell to roughly 9.7 percent, which was higher than the numbers that analysts expected.
The slight decrease in April primarily involved lowering of food and electricity prices in the country, according to The Guardian, citing Statistics Sweden. But despite that, other goods and services saw a striking bump in pricing last month. To be more precise, the agency notes, "hotel and restaurant visits, recreational services, and clothing" all saw a hike in their prices.
Given that, the Sweden bank chief economist, Grahn, pointed fingers at the Stockholm stop of the sensational star Beyonce, blaming the concert for the rising prices last month.
Grahn told BBC that Beyonce's "performance and global demand to see her perform in Sweden apparently added a little to" the inflation in Sweden.
It is worth noting that the inflation in Sweden peaked last December at around 12.3 percent. In May, financial markets expected it to drop to 9.4 percent, but as Grahn suggests, the "Beyonce effect" happened.
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Beyonce's 'Renaissance Tour'
RIO DE JANEIRO, BRAZIL - SEPTEMBER 13: Singer Beyonce performs on stage during a concert in the Rock in Rio Festival on September 13, 2013 in Rio de Janeiro, Brazil.
BBC notes that Airbnb revealed that the "Renaissance Tour" ballooned the accommodation searches in cities where Beyonce is performing.
Tens of thousands of Beyonce fans stormed Stockholm as the phenomenal performer graced the Swedish stage for two nights in May. Estimates suggest that the crowd for each of the two concerts is around 46,000. The staggering number of concert-goers forced some folks to stay outside as nearby hotels were fully booked.
Fans have flocked to Stockholm due to the high inflation in the country since the Swedish currency has gotten weak, making ticket prices lower compared to other territories.
Grahn says that the impact of Beyonce's tour is a "very rare" phenomenon, wherein a single star shoots up the inflation in the country. He notes that the same effect only occurs during massive soccer tournaments.
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