Swiftflation headache for the Bank of England

'Swifties' – the US singer's fans – spent hugely on tickets, travel and hotels

By CITY & FINANCE REPORTER

Updated: 06:18 EST, 13 July 2024

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Concern: The 'Taylor Swift effect' could add to the Bank of England's inflation headache

The 'Taylor Swift effect' could add to the Bank of England's inflation headache, economists think.

But they have urged rate-setters to shake it off as they ponder when to cut interest rates from 5.25 per cent.

'Swifties' – the US singer's fans – spent hugely on tickets, travel and hotels on her June dates in Edinburgh, Liverpool, Cardiff and London, and are likely to have pushed up services sector inflation – a measure Bank officials worry about even though inflation has fallen to 2 per cent.

And that could mean the Bank may not cut interest rates on August 1.

With June inflation data due this week, Capital Economics forecast inflation was 1.9 per cent while services inflation was 5.7 per cent.

Without Swift, inflation would be 1.8 per cent and services 5.5 per cent, analysts estimate.

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