The UK’s June Consumer Price Index (CPI) inflation rate slightly exceeded market expectations, with opinions emerging that top US pop star Taylor Swift had an influence.
The UK Office for National Statistics (ONS) announced on the 17th (local time) that the June CPI inflation rate was recorded at 2% year-on-year. This was slightly higher than or in line with market experts’ expectations of 1.9?2.0%. The core CPI, which excludes volatile food, beverages, and energy, also rose 3.5% year-on-year, slightly surpassing market expectations.
By sector, hotel price inflation was particularly notable at 8.8%, significantly higher than 1.7% in the same period last year. The June service sector inflation rate of 5.7%, which exceeded the forecast of 5.6%, was also largely influenced by the rise in hotel prices.
Accordingly, there is analysis that Swift’s 'Eras Tour,' held in several UK cities last month, had an impact. Swift performed 10 times across the UK from June 7 in Edinburgh to June 23 in London.
It is known that wherever Swift’s concerts took place, large crowds gathered, causing local prices to fluctuate. Last month, Barclays released a survey showing that fans spend ?850 (1.53 million KRW) each time they attend a Taylor Swift concert in the UK.
Sanjay Raja, Deutsche Bank’s chief UK economist, stated, “It is difficult to fully grasp, but it seems there is some Swift effect.”
The Associated Press reported the CPI inflation announcement under the headline, “Bank of England faces dilemma amid possibility that Taylor Swift is pushing UK inflation higher.”
However, there are also criticisms that it is difficult to attribute these figures to Swift’s concerts. The ONS collected hotel price data on June 11, during which there were no Swift concerts. Additionally, the service sector inflation rate for June was 7.3%, lower than May’s 7.7%.
TD Securities strategists noted that while Swift’s concerts may have slightly raised service price inflation, considering the timing of data collection, it is difficult to say that the hotel price increase was due to Swift’s concerts.
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