Swedish inflation dips less than expected, Beyonce blamed for high prices
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Beyonce's concerts in Stockholm in May probably accounted for 0.2 of the 0.3 percentage point added to inflation by hotels and restaurant prices, says Mr Michael Grahn, chief economist for Sweden at Danske Bank.
PHOTO: BEYONCE/INSTAGRAM
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STOCKHOLM – Swedish inflation dipped below 10 per cent in May, official statistics showed on Wednesday, but it was still higher than expected, with some analysts suggesting superstar Beyonce had tipped the scales.
Consumer prices rose by 9.7 per cent in May year on year, down from 10.5 per cent in April, the first time inflation came in under 10 per cent in more than six months.
“Continued decrease in electricity and food prices contributed to the lower inflation rate in May,” Mr Mikael Nordin, statistician at Statistics Sweden, said in a statement.
At the same time, costs of certain goods and services rose, “for instance hotel and restaurant visits, recreational services, and clothing”, the agency said.
According to Mr Michael Grahn, chief economist for Sweden at Danske Bank, a visit by Beyonce to Stockholm could explain the unexpected rise.
“Beyonce’s start of her world tour in Sweden seems to have coloured May inflation, how much is uncertain,” he tweeted.
He added that the American superstar’s much-hyped concert in May
Tens of thousands of fans flocked to Stockholm in the middle of May to catch the two concerts that kicked off her first solo tour in seven years.
Inflation peaked in December 2022 at 12.3 per cent – a more than 30-year high – then slowed slightly in January to 11.7 per cent, but unexpectedly spiked to 12 per cent in February.
Like its peers in the United States and Europe, Sweden’s central bank has repeatedly raised its guiding rate in an effort to rein in inflation.
The Riksbank raised the rate to 3.5 per cent in late April and said it would probably raise it by another quarter-point in June or September.
Inflation adjusted for fixed interest rates – the figure used by the Riksbank to guide monetary policy – was 6.7 per cent in May, compared with 7.6 per cent in April.
For 2023 as a whole, the central bank expects the Swedish economy to contract 0.7 per cent, and has forecast unadjusted inflation of 8.9 per cent and rising unemployment. AFP
