Brutal summer for the Bank of England as the return of music concerts and festivals fuels inflation
As if central banks weren’t worried enough, blockbuster concerts could hamper the fight against inflation.
Music festivals and performances are roaring again since the end of the pandemic, with Beyonce, Bruce Springsteen and Elton John touring the UK this year, and Taylor Swift coming in 2024.
But a common theme that fans and economists have noticed is the rising cost of tickets, travel and accommodation – or “tourflation” as it’s called.
Klaus Baader, global chief economist at Societe Generale, says prices linked to concerts have “exploded.”
And according to Danske Bank’s Filip Andersson, the impact of Beyonce’s tour stop in Stockholm was “clear” in Sweden’s inflation numbers.
‘Tourflation’: Music festivals and gigs have returned with Beyonce and Elton John touring the UK this year, and Taylor Swift (pictured) touring in 2024
With inflation in the UK still at 8.7%, a similar effect here is the last thing the Bank of England needs.
But when Beyonce performed in Cardiff in May, hotel rooms were advertised for up to £1,000 a night. Tickets for Taylor Swift range from £57 to £661.
“These are eye-watering numbers,” said Neil Wilson, an analyst at Markets. “It doesn’t take too many people to buy tickets to have an effect.”
Official figures for May show that rising ticket prices were one of the factors behind higher-than-expected inflation.
But Philip Shaw, chief economist at Investec, said: “I’d be a bit surprised if a given concert had a visible impact on inflation, but it’s not impossible.”