Group: Raising minimum wage could cause drastic inflation

(The Center Square) – Illinois lawmakers have proposed raising the state’s minimum wage to $27 per hour in 2032, but an employment policy researcher says the move could trigger drastic inflation.

House Bill 5367 and Senate Bill 3821 provide for incremental increases, starting on July 1st of this year.

Citing research by economists and Bureau of Labor Statistics data, Employment Policies Institute Research Director Rebekah Paxton said every one-dollar increase in the minimum wage can trigger up to 5.5% price inflation.

“When you’re talking about a proposal like a $27 an hour minimum wage, those increases could be much more drastic and much more swift, depending on how it’s implemented,” Paxton told The Cente...