How is funflation causing us to spend more on live entertainment?
Thanks for asking! If you're a fan of Taylor Swift, it won't have escaped your notice that the singer was back on tour this year across the United States.
And what a tour it's been so far.
Fans were desperate to attend and prepared to pay from $49 to $499 for the privilege, according to face value ticket prices quoted by Stylecaster .com.
Meanwhile, resale ticket prices were in the thousands.
If that seems a lot, then you should bear in mind that the cost of live entertainment has been rising due to what's known as funflation.
Obviously, it's a mix of fun and inflation, and economists say it's caused by a growing demand for events like Taylor Swift concerts or live sports.
Of course, such events have always been pretty dear to attend, but prices have really been driven up at an abnormal rate recently.
Critics say it equates to price gouging.
A Pitchfork .com article from August 2023 quoted data from concert trade publication Polestar, stating that the average face value concert ticket price globally year -to -date is $79 .42.
That represented a 14 % increase compared to 2019, which was the last full year prior to the Covid -19 pandemic and everything that brought with it.
How are people able to afford this extra spending?
Well, some people certainly still have some savings from Covid lockdown times when they weren't spending on travel, live events and new outfits, for example.
But even beyond that, people are now choosing to prioritize live entertainment more when it comes to their disposable income, at the expense of other areas.
Let's listen to economist Bernhard Warner talking to CBS News about some of the other phenomenon is not just happening in the United States, it's happening in other industrialised countries as well.
Talking at Fortune magazine's most powerful women's summit in October 2023, Corey Barrie, the CEO of American electronics retailer Best Buy, gave her two cents.
She said that Americans were forsaking traditional retail stores like hers to indulge in cultural experiences.
Does the same go for other days out, apart from concerts?
Indeed, and it's been even more plain to see when it comes to live sports tickets.
According to data from the US Bureau of Labor Statistics, prices for sports tickets rocketed by 25 .1 % between October 2022 and October 2023.
That made it the highest annual inflation rate of all the categories in the consumer price index, which as a whole rose by just 3 .2 % for the same period.
Rodney Paul is director of the Sports Analytics Program at Syracuse University.
Talking to CNBC about the factors behind fundflation in sports, he cited the craving for that kind of feeling of togetherness that the sports world brings.
There you have it… Now you know how fundflation is causing us to spend more on live entertainment.
In under 3 minutes we answer your questions and help you understand the true meaning behind the trends, concepts and acronyms that are making headlines.
Listen along and you will really know for sure.