One unanticipated repercussion of the ongoing 40-year high level of inflation is the impact it is having on automatic minimum wage rates in a number of states. Most recently, three states announced that new minimum wage rates for 2023 will be higher than they had previously anticipated. With minimum wage rates tied to the Consumer Price Index (CPI), Colorado announced the 2023 state minimum wage will rise on January 1 to $13.65 per hour – an 8.68 percent increase – due to corresponding increases in the state CPI. Similarly, the minimum wage in Denver will rise to $17.29 an hour on New Year’s Day. In Arizona, inflation will push the minimum wage in the Grand Canyon State up to $13.85 an hour on the first of the year, up from the current $12.80 per hour. Earlier in the summer, the California Director of Finance advised Governor Gavin Newsom that the minimum wage in the Golden State would increase to $15.50 per hour on January 1 regardless of employer size as a direct result of the increased CPI. With inflation continuing unabated, we can expect more states to certify higher minimum wages for the coming year.