Here are the states raising their minimum wage based on today’s CPI report

Minimum wage workers in seven states will soon get raises based on the latest consumer price report that shows a jump in inflation.

Minimum wages in Arizona, Maine, Montana, Ohio, South Dakota, Vermont, and Washington are pegged each year to the August consumer price data, and will rise in tandem next year.

The minimum wage in Arizona, Maine, Montana, Ohio, South Dakota, and Washington is $12.80 an hour.

The minimum wage hike in Vermont is capped at 5%. The adjustments are made to the nearest five cents.

This year, inflation has hit a four-decade high, driven by lasting supply-chain shocks as a result of the swine flu and the war in Ukraine. The real value of savings and worker pay has been eroded by the high prices.

Minnesota pegs its minimum wage to changes in the PCE at the end of this month, instead of relying on the consumer price index. The change in goods and services is measured by PCE as opposed to the change in out of pocket expenditures.

Minimum wages in the District of Columbia and a number of other states are pegged to inflation, but are based on other measures. The minimum wage in Oregon is pegged to the change in the consumer price index. The Director of the Division of Budget makes the decision on the annual index.

Automatic minimum wage adjustments help low wage workers in certain states keep up with inflation, according to a senior state policy official.

The lowest-paid workers don't have to wait for a legislature to raise the minimum wage for them to keep up, he said. This year prices are considerably higher than they have been for a long time, and low- wage workers are going to suffer the most from that.

The other five states and D.C. will see an increase in minimum wage at some point in the year. He said that more states are likely to raise their minimum wage based on inflation.

Wages are falling behind as prices go up.

The federal minimum wage should be tied to inflation according to the man. He said that it gives workers the ability to keep up with inflation as the cost of goods increases.

The state's minimum wage is protected from political winds if the minimum wage is index.

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