Nineteies' cult music group resurgence may spur inflation in Britain.
The highly anticipated Oasis reunion tour is causing a small, temporary increase in UK inflation, according to economists. The tour, which began in July and is set to end in November 2025, is expected to boost headline inflation by around 4 basis points (0.04%) in Q3 2025.
The increase in inflation is due to a surge in consumer spending on tickets, travel, accommodation, and merchandise. The tour has sparked serious excitement among fans, with some paying hundreds of pounds for tickets. The band's concerts in August are also expected to contribute to this temporary inflationary effect.
Despite this, the Bank of England is not expected to change its decision on interest rates due to the Oasis tour. This is because the tour falls outside the data collection dates by the national statistical agency. A spike in the consumer price index could be unwelcome for the Bank of England, especially during an important autumn decision-making period.
The impact of the Oasis reunion on UK inflation is minimal compared to broader inflationary pressures in the UK. The Bank of England is currently deciding whether to continue lowering interest rates despite the sharp rise in prices, with the current expectation being that inflation will peak at 4% in September.
The Oasis tour is considered one of the most significant events in the music industry, marking the return of one of the most significant and successful bands in the world in the Brit-pop genre. The tour is expected to generate over £1 billion ($1.3 billion) in revenue, and the resurgence of the band's old songs in the UK charts is a testament to their enduring popularity.
However, the Oasis concerts could potentially further exacerbate the challenging situation faced by the Bank of England. The increase in inflation is due to a more severe than expected rise in food prices, which is a concern for the central bank. Economists advise the Bank of England not to overreact to this event-driven bump, as cultural events can briefly influence inflation, and investors watch the hospitality and ticketing sectors closely.
The situation is reminiscent of Taylor Swift's UK tour last year, where some claimed it contributed to inflation in the services sector, mainly through increased hotel prices. The average spending per person on the Oasis tour is estimated to be £766, which could lead to a 500% surge in Manchester hotel prices, for example.
The effects of the Oasis tour on UK inflation will be temporary and limited to data for July and August. The tour is moving to North America in September, which could alleviate some of the pressure on the UK economy. The Oasis reunion has resulted in a resurgence of the band's old songs in the UK charts, and fans are eagerly awaiting the band's concerts in August.
The surge in consumer spending on Oasis tour-related expenses, such as tickets, travel, accommodation, and merchandise, has contributed to a slight increase in UK inflation. The band's concerts in August are also expected to further this temporary inflationary effect.
The increase in inflation due to the Oasis tour is minimal compared to broader inflationary pressures in the UK, with the Bank of England currently deciding whether to continue lowering interest rates despite the sharp rise in prices.