It depends really. It could cause an inflation in prices but not necessarily. It could come out of the profits a company makes as they try and compete by keepin

It depends really. It could cause an inflation in prices but not necessarily. It could come out of the profits a company makes as they try and compete by keeping their prices lower while still paying higher wages. This would have an effect on the share price of the company as their bottom line would decrease but could also increase share price if they make it up in volume due to being more competitive. It could also create efficiency in the company since they would incentivized to have fewer employees making more money while producing more efficiently.