THE BEYONCÉ EFFECT: SWEDEN’S INFLATION FEELS THE HIT

Call it Bey-flation.

Sweden’s higher-than-expected inflation in May was due in part to Beyoncé launching her Renaissance World Tour in Stockholm, according to an economist at Danske Bank.

Fans flocking to Sweden’s capital city sent hotel prices soaring, said economist Michael Grahn. Calling it a “Beyoncé blip,” he estimates that Beyoncé’s tour contributed about 0.2 percentage point to inflation.

“This is very rare,” Grahn said about the effect that Beyoncé’s Stockholm performances on May 10 and 11 had. “Basically, her fans vacuumed hotels around Stockholm with a radius of some 40 miles,” bidding up hotel rates.

Inflation in Sweden was at 9.7% in May, falling from 10.5% the month before, according to Sweden’s government. Economists surveyed by FactSet were expecting inflation to drop to 9.2% last month. Statistics Sweden, which puts out the country’s inflation and other economic reports, said hotel and restaurant prices rose 3.3% in May from the month before.

“Beyoncé probably had an effect on hotel prices in Stockholm the week she performed here,” said Carl Mårtensson, a price statistician at Statistics Sweden, “but it should not have had any significant impact” on Sweden’s inflation.

The Renaissance tour, named after Beyoncé’s most recent album, is making its way around Europe before coming to the U.S. next month. The superstar’s first tour in seven years is playing in soccer and football stadiums, where fans watch her dance with robots and sing while riding a mirrored horse that floats in the air.

Beyoncé, whose hits include “Crazy in Love” and “Formation,” broke the record for most Grammy wins in February after “Renaissance” won best dance/electronic music album. She’s had 32 Grammy wins over her career, the most of any person.

When Renaissance tour tickets went on sale earlier this year, Beyoncé superfans, who call themselves the BeyHive, tried to buy tickets in several cities, fearing they would go quickly. A day after tour dates were announced, Ticketmaster said fan demand for the first round of tickets exceeded the number of tickets available by more than 800%.

Grahn said Sweden’s currency, the krona, is weak, which means tickets and other costs are likely cheaper for fans outside the country.

Other superstars touring this year after a long break have also made an economic impact on the cities they have visited.

Taylor Swift, who is in the midst of her Eras Tour, helped Las Vegas nearly match pre pandemic visitor levels when she performed there in March, the Las Vegas tourism authority said. Cities have been going all out to welcome Swifties in town for the Eras Tour, lighting up monuments in her signature colours and temporarily renaming streets after her.