Beyoncé’s recent world tour kick-off in Sweden has unexpectedly contributed to the country’s rising inflation, according to economic experts. In May, Sweden reported a higher-than-anticipated inflation rate of 9.7%, with the surge primarily attributed to increased prices in the hotel and restaurant sectors.
Economist Michael Grahn from Danske Bank suggested that Beyoncé’s performances may have driven the spike in hotel rates, as well as the unexpected uptick in prices for recreation and culture. While he emphasized that Beyoncé should not be solely blamed for the high inflation, he acknowledged that her concerts and the global demand to see her perform in Sweden likely played a role.
“I wouldn’t … blame Beyoncé for [the] high inflation print, but her performance and global demand to see her perform in Sweden apparently added a little to it,” he wrote in an email to the BBC.
The singer’s first solo tour in seven years has undoubtedly made a significant economic impact. Projections indicate that the tour could generate nearly £2 billion in revenue by its conclusion in September. Accommodation searches in tour cities skyrocketed following the announcement, and tickets sold out rapidly, leading to inflated prices on the resale market. The influx of fans was notable in cities like Cardiff, where 60,000 attendees from various countries flocked to witness Beyoncé’s performance. Even in Stockholm, where she performed for two nights to a crowd of 46,000, fans from around the world, particularly the US, traveled to attend the concerts, benefiting from the strong US dollar against the Swedish krona.
The surge in tourism attributed to Beyoncé’s concerts has been labeled the “Beyoncé effect” by Visit Stockholm. While Sweden experienced a peak inflation rate of 12.3% in December, the May figure of 9.7% represents a slight decrease from April’s 10.5%. Economists expect the trends to return to normal in June, and although it is uncommon for a single star to have such a pronounced impact on inflation, large-scale sports tournaments have been known to produce similar effects.
