Legend of Zelda computer game release blamed for shock inflation spike

The release of a popular video game helped trigger a shock rise in underlying UK inflation last month, a top analyst has suggested.

HSBC senior economist Chris Hare said today’s surprise announcement that core inflation rose to 7.1pc – the highest for 31 years – was fueled by a spike in demand for live music events, package holidays and computer games – including the release of popular game “Legend of Zelda: Tears of the Kingdom” last month.

The shock rise in core inflation has sparked further fears over Britain’s growing mortgage crisis, with the Bank of England due to increase interest rates again tomorrow.

HSBC’s Mr Hare wrote in a report this morning: “There was an upward contribution worth 0.06ppts [on core inflation] from recreation and culture, mainly due to admission to live music events, computer games and package holidays.

“It’s possible that strength in computer games prices might have been partly due to the release of the – rather aptly titled – ‘Legend of Zelda: Tears of the Kingdom’ on May 12.

“There were also positive contributions from restaurants and hotels, health services, second-hand cars, and air fares.”

The new Zelda game has been wildly popular. By June 3, it was the number one selling game in the UK.

It comes as American singer Beyoncé’s tour of Sweden last month sparked huge demand for hotels and restaurants, which was reported in the country’s official economic inflation statistics.

Sweden reported higher-than-expected inflation of 9.7pc last month.

In what was a shock to economists and mortgage holders, core inflation, which strips out energy, food, alcohol and tobacco, rose from 6.8pc in May and is the highest rate since 1992, according to the Office for National Statistics.

Headline consumer price inflation refused to fall in the month, with prices up 8.7pc on the year, matching April’s rise and surprising economists who had anticipated a drop to 8.4pc.