Immigration Can Help Reduce Inflation In The UK
The Deputy Head of the International Monetary Fund believes immigration can allow the UK to cut inflation significantly. Don’t forget the UK recently imposed a limit on the total number of legal migrants.
It seems that the high inflation rate in the UK will not come down any time sooner. Most of it is because of sectors like farming and hospitality in which employers are forced to pay higher wages to recruit people for large vacancies.
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In an interview with BBC, IMF Deputy Managing Director Gita Gopinath stated that the availability of skilled workers to fill the labour market gaps in various sectors would indeed push inflation down.
According to official data, UK annual inflation came down in April, but it is still high at 8.7% because food prices offset weaker energy costs.
What’s interesting to note here is that analysts predicted a much larger drop from 10.1% in March.
Gopinath further added that IMF thinks that having a well-versed immigration policy can prove highly beneficial for the country. Plus, migrants also contribute greatly to taxes.
Here, it is important to note that UK Prime Minister Rishi Sunak claimed last month that legal migration has gotten too high. He also announced certain restrictions on family visas for overseas students.
UK net migration broke all records after reaching 606,000 in 2022. This put a lot of pressure on the Conservative government, which promised to reduce UK’s reliance on international workers.
We hope you found this information helpful. Follow our blogs for the latest updates and informative content on UK immigration.
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