Last month my wife and daughter dragged the Mintz family to London to see famed singer and performer Taylor Swift play at Wembley Stadium. While I survived the show, and really enjoyed it, my family, like so many Americans, may have sparked inflation across Europe.
Before I get to the “Taylor Effect” on inflation, first off here is my review of the concert …
While I’m not a “Swiftie,” my teenage daughter idolizes the singer/songwriter and it was her dream to one day see a Taylor Swift show. And as a dream-maker of a father, I delivered front-row seats to the show … though of note, we “only” paid $500 per ticket in London, whereas tickets BEHIND the stage in the U.S. were going for over $2,500!
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So how was the concert?
It was really great! Taylor performed for three-and-a-half hours straight, singing and dancing with great enthusiasm and energy, while constantly changing costumes, backdrops, and themes. She is an amazing performer, so much so that my teenage son, who is not a fan, was blown away by the experience.
Here are a couple pictures from the show, with the second photo of fellow star Ed Sheeran who surprised the crowd by joining Taylor on stage for a couple songs.
And while the show was great, one thing that stood out for the Mintz family was how many Americans were at the show. I’m not exaggerating when I say it’s possible that 50% of those people that we met, or just heard talking in passing, were Americans. In fact, one British concertgoer said to me “Where the hell did all you Americans come from?!!!”
So why do I bring this American invasion up? Evidently, the Mintz family and others were spending enough money, that economists felt the need to highlight that the “Taylor Effect” could spike inflation across Europe this summer. For example, here are a couple headlines as Taylor’s concerts went from city to city:
Analysts attributed a surprise surge in Swedish inflation in May to three Swift concerts in Stockholm that drove up the city’s hotel and other service prices.
From the New York Times:
Inflation in Britain held steady in June as the Bank of England inches toward its first interest rate cut in years and economists pondered whether a global pop star helped keep services prices higher.
Consumer prices in England rose 2 percent from a year earlier, and in line with the central bank’s target. Inflation was pulled down by cheaper clothing but offset by a jump in the price of hotel rooms.
“While difficult to fully untangle, it’s certainly very possible that some Taylor Swift effects were at play here,” Sanjay Raja, the chief U.K. economist at Deutsche Bank, wrote in a note.
Strategists at TD Securities noted that Ms. Swift’s tour probably pushed up services inflation a little.
And while Taylor Swift was the big event that the Mintz family traveled for, we also went to see a West Ham soccer game, as well as ate and drank our way through London, and finally, because my wife wanted to be fair, she felt it was only right to spend some money and add to inflation on a shopping spree in Paris as well.
All in all, it was a fantastic trip and my kids will hopefully remember this vacation for the rest of their lives. Though by the end of our travels, it was good to be back in the United States, and back at the trading screens ready to finish 2024 off strong for Cabot Options Traders.
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