The US central bank can't blame immigration for inflation anymore

A new paper finds that the recent surge in US immigration did not cause inflation. This is because the extra labor immigrants provide balances out their increased consumer demand.

For years, many people assumed that a large influx of immigrants would automatically drive up prices. This paper shows that the economic effects are more complex, with new workers balancing out new consumers. It means that arguments linking immigration directly to inflation now have less evidence to stand on.