BETHESDA, Md. -- Workers across the country Thursday welcomed a raise in the federal minimum wage, but some businesses said the higher wage will only mean higher prices for consumers.

The federal minimum wage increased Thursday by 70 cents an hour. The raise -- from $5.85 to $6.55 per hour -- is the second of three annual increases required by a 2007 law. The wage increases to $7.25 next July. Before the law was enacted, the federal minimum wage had not risen in 11 years.

There is an ongoing debate, however, about whether the minimum wage really helps low-income workers or just adds to the cost of goods and services, reported WRC-TV in Washington, D.C.

The Greater Washington Board of Trade said retail and small businesses will feel the minimum wage increase more directly and have difficulty absorbing the added cost.

"Consumers can expect to pay more in the long run," the business group said.

At Hard Times Cafe in Bethesda, management said the raise adds to restaurants' costs in an already slow economy.

But Andrea Sandler, co-owner of Daisy Baby store, said even the new minimum wage is not enough to attract the type of retail worker she needs and wants.