Starting Jan. 1, Arizona takes the third of four steps in raising the state minimum wage, part of a plan approved by voters in 2016.
Workers will see their hourly wages bump up from $10.50 to $11.00, as the state moves toward its $12 minimum goal by 2020.
The increase has had strong opposition by business lobbyists who have argued it will make operations financially uncompetitive.
It's difficult to say if higher wages are contributing to a near one percent gain in inflation, but University of Arizona economist George Hammond said data is showing growth.
"What we're seeing macro-economically is the state's still growing rapidly, 2.6 percent growth last year," Hammond spelled out, "That's about the same as 2016, maybe a tenth of a percent slower."
Employment numbers are up, too, with the private sector in Arizona up more than 3.6 percent, and hospitality employment at 5.6 percent.
At $11, most minimum wage workers will earn about a $1000 more next year.
