Could Rising Wages Push the US Inflation Rate Even Higher?
SerhiiBobyk / Getty Images/iStockphoto  With inflation in the United States already hitting its highest level in 13 years, Americans dont need one more reason to worry about rising prices. But they could get one if employers decide to hike prices on certain items to help pay for steadily rising wages. See: Hourly Wages Are Going Up But More Needs to be Done to Bring Workers Back  Find: Industries With Worker Shortages Despite Wage Hikes  You May Have Trouble Finding a Mover or a Veterinarian  Average hourly earnings in the U.S. hit $30.40 in June, according to data from the U.S. Bureau of Labor Statistics. That was up from $29.35 the previous year, a gain of 3.5%. Average weekly earnings climbed 3.8% to $1,054.88. The rising wages are mostly due to a labor market beset by worker shortages in numerous industries. As GOBankingRates previously reported, many employers are offering pay hikes and bonuses to lure and keep workers. But even that hasnt done much to fix labor shortages in certain sectors of the economy, with everything from sawmills to long-haul trucking firms still struggling to fill available jobs. Meanwhile, the hospitality industry has been especially aggressive about hiking wages to attract more teen and other workers, a separate GOBankingRates article noted last week. Restaurant companies that have boosted pay include McDonalds, Chipotle Mexican Grill and Darden Restaurants, which owns the Olive Garden chain. Make Your Money Work for You  See: Teens Are Taking High Paying Jobs, Filling Employment Gaps Left by Adults During COVID  Find: 22 Side Gigs That Can Make You Richer Than a Full-Time Job  On the Indeed job search site, 4.1% of employers offered cash bonuses or other hiring incentives in June, CNBC reported on Thursday. Thats more than double the prior-years rate. Certain food prep jobs advertised bonuses ranging as high as $2,500. One fear is that these developments could prompt companies to raise prices on goods and services to help pay for the higher wages  something that would only add to an inflation rate that is already among the highest this century. See: This Is the Living Wage You Need in All 50 States  Find: The Effect of Stimulus Checks on Inflation & the Overall Economy  The Consumer Price Index rose 0.6% in May after climbing 0.8% in April, according to the most recent BLS data. Over the previous 12 months, the index increased 5% before seasonal adjustments, which was the largest 12-month increase since a 5.4% gain for the period ending August 2008. But many government officials, including President Joe Biden, warn against getting too panicky about the impact rising wages could have on inflation. As CNBC noted, Biden said during a speech in May that the American economy has more than ample room to raise worker pay without raising customer prices.  Make Your Money Work for You  The Federal Reserve has also downplayed worries over inflation, suggesting that price pressures will fade over time as the post-COVID economy returns to normal. More From GOBankingRates