Editing Openai/69640cff-e5e0-8003-a8d1-a78b118ca18b (section)

==== This is a real welfare channel often neglected in public debate. ====

A Migration Advisory Committee‑commissioned report by Frattini (2014) studies UK regional CPI data (1997–2012) and finds:
* no effect on tradable goods prices (as expected in a small open economy),
* limited average effects on non-tradables overall,
* but negative effects on price growth in sectors that use low-wage labour intensively (examples listed include take‑away food, washing/dry cleaning, hairdressing, etc.), especially pre‑2007.

These price reductions are not a mere “transfer” among residents in the way housing price changes are. Lower service prices are a genuine real-income gain to consumers, reflecting lower marginal costs/markups. (Distributionally, they can benefit groups differently depending on consumption baskets.)

This channel tends to make low-skilled immigration look more positive in net welfare terms than an “only wages” analysis.