Why Beyonce Is Being Blamed For Inflation In Sweden

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The frenzy generated by the start of the singer’s world tour contributed to skyrocketing prices in the country. The start of the singer’s world tour in Sweden increased demand for hotels and meals in restaurants and influenced the country’s economic statistics. Getty Images via BBC Thought the war in Ukraine and disruptions in supply chains were to blame for rising prices? That’s because you haven’t heard of the Beyoncé effect. The start of the singer’s world tour in Sweden last month has generated such demand for hotels and restaurant meals that it has appeared in the country’s economic statistics. Sweden recorded a higher-than-expected 9.7% inflation in May. Rising hotel and restaurant prices were behind the surprise. Michael Grahn, an economist at Danske Bank, said he believed Beyoncé helped drive the jump in hotel room rates. It may also have been the force behind the unexpected rise in prices for leisure, recreation and cultural activities, he said. “I wouldn’t blame Beyoncé for the high inflation, but her performance and the global demand to see her perform in Sweden apparently played a part in this,” he wrote in an email to the BBC. There’s no doubt that the singer’s first solo tour in seven years marks a huge economic moment. At least one estimate suggests that the tour could raise nearly £2 billion ($4 billion) by the time it ends in September. Searches for accommodations in the tour’s cities skyrocketed after the tour was announced, Airbnb said. Tickets for many shows sold out within days, and prices skyrocketed in the resale market. In the UK, 60,000 people flocked to Cardiff, Wales, including fans from Lebanon, the US and Australia. The demand for hotel rooms as a result of the concert in London was so high that, in one case, some homeless families accommodated in a hotel by the local council were reportedly removed to make way for fans of the singer. The Stockholm shows, where Beyoncé sang to a crowd of 46,000 over two nights, drew fans from around the world — especially from the United States, where the strong dollar against the Swedish krona helped make tickets in the Nordic country seem relative theft. In an email to the Washington Post last month, Visit Stockholm described the city’s tourism boom as the “Beyoncé effect”. Sweden’s 12-month cumulative inflation peaked at 12.3% in December. The index of 9.7% last month is down from 10.5% in April, according to official data. Financial markets were expecting around 9.4%. For an artist to have such an impact is “very rare”, Grahn told the BBC, adding that major football leagues can have a similar effect. He wrote on social media that he expects trends to return to normal in June.

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