Taylor Swift Effect May Be Latest Dilemma for BOE Rate-Setters
- Economists warn it may have a temporary impact on services CPI
- BOE is watching services prices closely for signs of cooling
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Bank of England rate-setters may have a new conundrum as they look for signs that services inflation has cooled by enough to open the door to interest rate cuts: how to deal with the Taylor Swift effect.
Forecasters warn that Swift’s 10 UK concerts in June may have delivered a small boost to services inflation through hotel and ticket prices after a scramble by fans to see the pop phenomenon. Many “Swifties” traveled long distances to see the singer-songwriter, who put on shows in Edinburgh, Liverpool, Cardiff and London.