- Natalie Sherman
- Economics Editor – New York
Fans from all over the world flocked to the Swedish capital for Beyoncé’s concert
Do you think the war in Ukraine or problems with supply chains are primarily responsible for the price hike and inflation? You probably don’t know how Beyoncé’s concerts have affected inflation levels in Sweden.
Last month, the American singer performed her first concert – as part of her world tour – in the Swedish capital, Stockholm, which greatly increased the demand for hotels and restaurants, according to economic statistics in the country.
Last May, Sweden recorded a higher-than-expected inflation rate of 9.7 percent.
The rise in hotel and restaurant prices was behind this sudden inflation.
Danske Bank economist Michael Grahn said he believes Beyoncé helped drive the majority of those gains. He added that it may have been the reason behind the unexpectedly strong rise in the prices of entertainment and cultural services.
He wrote an email to the BBC saying: “I wouldn’t blame Beyoncé for the high inflation rates, but it seems that her performance and the high demand to attend her concerts in Sweden added little to the high inflation rates.”
There’s no doubt that the singer’s first solo tour in seven years marks a major economic moment. It is estimated that Beyoncé will reap about two billion pounds from this world tour by the end of next September.
And Airbnb – for renting accommodation – stated that searches for places to stay and stay overnight increased in the cities in which the singer announced concerts. Tickets for many concerts sold out within days, and ticket prices soared on the resale market.
In the UK, 60,000 people came to Cardiff, including fans from the US and Australia. The demand for hotel rooms in London was so popular with the singer’s fans that some homeless families – who are staying in a hotel by the local council – have been told to leave the hotel in order to make room for the audience.
Beyonce performed two concerts in the capital, Stockholm, which were attended by 46,000 fans from all over the world – especially the United States, where the exchange rate of the US dollar against the krona helped make ticket prices an irresistible bargain.
Last month, Visit Stockholm sent an email to the Washington Post describing the city’s tourism boom as the “Beyoncé effect.”
Inflation rates in Sweden peaked in December last year when it reached 12.3 percent, and official figures show that the inflation rate in May of 9.7 percent is lower than its counterpart recorded in April of 10.5 percent. percent.
Grahn told the BBC that it was “very rare” for one star to have such an impact, adding that major football leagues could have a similar effect.
Grahn wrote on social media that he expects prices to return to normal in June.
