The Beyhive gets everywhere, including, of course, Sweden’s inflation data.
Sweden’s inflation data, released Wednesday, showed that year-over-year prices slowed to 9.7% in May from 10.5% in April, against expectations of a 9.4% reading.
The reason, economists said, was Beyoncé’s concert in Stockholm. Recreation and culture prices gained 1.6% on the month, and restaurant and hotel prices jumped 3.3%. “A one-off effect related to a surge in hotel and restaurant prices in connection to Beyoncé launching her world tour in Stockholm at least partly was to blame,” said a research note from Danske Bank.
A strong dollar USDSEK, +0.28% — up about 30% from 2021 lows vs. the Swedish krona — allowed Americans to visit the country ahead of the singer’s stateside tour that starts next month.
Despite the joy from the pop singer, the country appears heading for a sharp recession, with Nomura economists forecasting a four-quarter recession that results in output falling by 2%. Like many central banks, the Riksbank has had to lift interest rates aggressively, which is felt by consumers there given that some two-thirds of mortgages are floating rate.
JPMorgan says Swedish banks including SEB SEB.A, +0.67% and SHB SHB.B, +0.75% are among its top underweights within the European bank universe.
And there’s another worry — Bruce Springsteen is playing a series of concerts in Gothenburg at the end of June.