Stockholm, Sweden –
Beyoncé’s highly anticipated Renaissance tour has found itself at the center of controversy as economists at Danske Bank point fingers at the global superstar for driving up local hotel prices during her concerts in Stockholm. The Financial Time reports that according Danske Bank’s analysis, the surge in prices contributed to an unexpected increase in Swedish inflation rates.
The opening two sold-out concerts of Beyoncé’s Renaissance tour attracted thousands of fans from around the world to Stockholm last month. Anecdotal evidence suggests that many attendees, totaling 46,000 each night, had to seek accommodation outside of the Swedish capital, resulting in significantly elevated prices.
Sweden Statistics, the country’s official statistical agency, recently reported that the annual core measure of inflation, which excludes changes in energy prices, had only fallen by a marginal 0.2 percentage points from April to last month, reaching 8.2 percent. This reading fell short of economists’ and the central bank’s expectations.
Danske Bank’s chief economist in Sweden, Michael Grahn, attributed 0.2 percentage points of the rise in inflation to Beyoncé’s concert. He stated, “Beyoncé is responsible for the extra upside surprise this month. It’s quite astonishing for a single event. We haven’t seen this before.”
The May inflation figure was significantly influenced by the contribution from restaurants and hotels, which added 0.3 percentage points, and recreation and culture, which contributed 0.2 percentage points, according to Sweden Statistics.
Economists anticipate that the inflationary effects caused by the concert will gradually diminish this month. However, concerns have been raised about the upcoming Bruce Springsteen concert in Gothenburg at the end of June, with some experts fearing a similar impact.
Beyoncé, renowned for her chart-topping hits such as “Halo,” “Crazy in Love,” and her earlier work with Destiny’s Child, is currently touring Europe and will soon begin performances in the United States. This marks her first tour in seven years, resulting in overwhelming ticket demand across both continents.
Reports have emerged of Americans traveling to Sweden to take advantage of the weaker Swedish krona and significantly lower ticket prices compared to those in the United States. While tickets for the Stockholm concerts were sold at face values ranging from SKr650 to SKr1495 ($60-$140), resale tickets for her Las Vegas shows are currently priced between $91 and $689. In some US cities, resale tickets are commanding several times the original price.
The Riksbank, Sweden’s central bank, was one of the last among Western central banks to increase interest rates, only departing from its zero lower bound in May of last year. With its benchmark rate currently at 3.5 percent, economists like Grahn anticipate two more rate hikes this year in an effort to bring headline inflation down to its 2 percent target.
The consensus expectation among economists for Swedish core inflation in May was 7.8 percent, while the Riksbank projected a figure of 8.1 percent.
Although large sporting tournaments often skew economic statistics, it is rare for a single concert event to have such a pronounced impact. While Beyoncé’s tour has yet to show a noticeable effect on inflation data in other countries she has visited, economists remain watchful for any potential future disruptions.
