A $1.13 hourly raise will make the state’s minimum wage $14.13 beginning on Jan. 1 -- that's about a 9% rise largely aligned with inflation.

It’s part of an annual increase signed by Gov. Phil Murphy in 2019 that will raise the minimum wage to $15 by 2024.

This year, the extra 13 cents comes in response to inflation.

Officials say seasonal and small businesses will be given an extra two years to meet the $15 an hour increase.

The national minimum wage remains at only $7.25.

When wages go up, it can push up prices, but for some experts, most companies have already raised prices.

"Prices are going to go back up but I don't think that's dependent upon minimum wage," said author and financial expert Neale Godfrey.

The state's move toward $15 an hour is equal to $30,000 a year.

Godfrey said the people most in need will continue to be squeezed, but there's another part of this.

"I don't like to be Debbie downer all the time, but you also have to look at the downside of a minimum wage hike. Small employers are really scraping by and they might say, 'You know what? I have to downsize,'" Godfrey said.

Still, she is more positive for the year ahead. Godfrey said hiring, in many cases, remains strong. She added when the government pumped out all that money during the COVID-19 pandemic, inflation was inevitable.