An unexpected surge in underlying inflation in the UK has been attributed to the release of a popular video game, according to a leading analyst. Chris Hare, a senior economist at HSBC, suggests that the recent announcement of core inflation rising to 7.1% – the highest in over three decades – was primarily driven by a significant increase in demand for live music events, package holidays, and computer games, most notably the release of the highly popular game “Legend of Zelda: Tears of the Kingdom” last month.
This sudden rise in core inflation raises concerns about the growing mortgage crisis in Britain, with the Bank of England expected to raise interest rates again in the near future. Mr. Hare states in a report: “The increase in core inflation can be attributed to a 0.06 percentage point contribution from recreation and culture, predominantly due to higher admissions to live music events, computer games, and package holidays. It is possible that the surge in computer game prices can be partially attributed to the release of the aptly titled ‘Legend of Zelda: Tears of the Kingdom’ on May 12. There were also positive contributions from restaurants, hotels, health services, second-hand cars, and air fares.”
The popularity of the new Zelda game is evident, as it quickly became the top-selling game in the UK by June 3.
Furthermore, Beyoncé’s recent tour of Sweden led to a significant surge in demand for hotels and restaurants, contributing to the country’s higher-than-expected inflation rate of 9.7% last month.
In a surprising turn of events for economists and mortgage holders, core inflation, which excludes energy, food, alcohol, and tobacco, rose from 6.8% in May to its highest rate since 1992, according to the Office for National Statistics. Headline consumer price inflation did not decline, with prices increasing by 8.7% compared to the previous year, matching the rise seen in April and defying economists’ predictions of a drop to 8.4%.
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