Millions of Californians got a raise this week, as the state minimum wage increased to $15.50 an hour.

Why it matters: Inflation is on the rise, and increasing the minimum wage can help to reduce economic inequality, according to the Economic Policy Institute.

• The Consumer Price Index, a measure of how much consumers pay for goods and services, has increased 7.1% over the past 12 months on the West Coast, according to the U.S. Bureau of Labor Statistics.

By the numbers: The minimum wage increase affects nearly 19% of California's workforce, about 3.2 million people.

• Those benefitting from the wage increase can expect an average $515 more in annual earnings.

Zoom in: San Francisco's minimum wage, as of July 2022, comes in even higher at $16.99 an hour.

• In 2014, San Francisco voters passed a measure to increase the minimum wage to $15 per hour by July 2018 and bump it up annually each year based on the annual CPI.
• In 2003, the city became the first local jurisdiction to implement a minimum wage higher than the federal or state minimum wage.

The big picture: There were wage increases in 22 other states and Washington, D.C., this year.

• The biggest factor driving the increases was inflation — 13 states tie their minimum wage rate to the Consumer Price Index, according to a new analysis. Other states had increases set by legislation or ballot initiatives.
• The federal wage floor, however, remains stuck at $7.25 an hour.

Be smart: These wage increases are part of a bigger...

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