The post Inflation spike in Europe is tied to the Olympics, Taylor Swift: UBS appeared on BitcoinEthereumNews.com.

A general view of the Eiffel Tower with the Olympics rings pictured with national flags of competing countries from the Place du Trocadero ahead of Paris 2024 Olympic Games on July 21, 2024 in Paris, France. Kevin Voigt | Getty Images Sport | Getty Images The Olympic Games are causing a surge in prices, but French consumers aren’t likely to feel its pinch. Mega events like the Olympics, or even big concerts like Taylor Swift’s Eras tour, lead to a rise in demand for hotel — rooms and airline tickets, as well as other goods and services needed by the influx of visitors. Even so, most consumers may not feel the impact, according to UBS.  Still, the data might suggest otherwise. That’s because the method for calculating consumer price changes might pick up the spiking costs in industries associated with tourism — like hotels — and provide a distorted impression. “The Olympic Games or a Taylor Swift concert create a sudden demand shock,” wrote Paul Donovan, chief economist at UBS Global Wealth Management, in a recent analyst note. “The measurement method for these prices is more likely to capture the unusual and transitory pattern of demand, and it is here that the increase in consumer price inflation takes place.” Taylor Swift performs onstage during The Eras Tour at Wembley Stadium on June 21, 2024, in London. Kevin Mazur | Getty Images This was already seen with the Eras Tour, as it boosted hotel revenue in cities across the U.S. where Swift was performing. This year, U.K. hotel prices increased in June, but Donovan said the higher costs “may have been borne by a select group of aficionados of Swift’s music” given that the Eras Tour came to Wembley Stadium that month. Meanwhile, the Summer Games are causing a similar phenomenon…

---

Filed under: News - @ August 11, 2024 12:24 pm