Updated Sep 13, 2022 - Economy

Workers in 7 states will get a raise based on today's CPI number

Emily Peck

Workers in seven states are set to get wage increases next year based on the CPI numbers released Tuesday morning. Overall, prices rose 8.3% in August over the past year, the Labor department said.

Why it matters: 12 states and Washington, D.C., adjust their minimum wages based on inflation and seven specifically look at the August readout. These moves were of less consequence when inflation was minimal.

Now: These kinds of adjustments have a real impact, raising the wage floor not only gives the lowest-paid workers a raise, but will ripple out to other workers.

The states that adjust to today's numbers are Arizona, which has a current minimum wage of $12.80; Maine, ($12.75); Montana, ($9.20), Ohio, ($9.30), and South Dakota ($9.95).

Vermont and Minnesota also index to the August number — but they cap increases to 5% and 2.5%, respectively.
The raises will go into effect in January 2023. For more detail on how this works, check out the Economic Policy Institute's blog on the topic.

Editor's note: This is a developing story. Please check back for updates.

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Workers in 7 states will get a raise based on today's CPI number

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