Trump's plan for mass deportation could have a big effect on prices

Inflation and Labor Market Impact - The US experienced a cooling of inflation in 2024, but economists warn that President-elect Donald Trump's mass deportation plan for undocumented immigrants could significantly affect prices [1] - Deporting a large number of undocumented immigrants could create labor force shortages, with a 2023 study in the Journal of Labor Economics indicating that 44,000 US-born workers could lose their jobs for every 500,000 immigrants removed from the labor force [1] Industry-Specific Effects - Immigrants, particularly unauthorized immigrants, are more likely to work in jobs that produce goods and services experiencing price increases, such as construction and agriculture [2] - Past mass deportation efforts suggest that prices in industries with high concentrations of unauthorized immigrants, like construction and agriculture, are likely to rise rather than fall [3]