Walmart Inc (WMT.N), the largest private employer in the United States, said on Tuesday it will raise the average hourly wage for its U.S. workers next month to more than $17.50.

The retailer currently pays an average of more than $17 to its almost 1.6 million U.S. hourly workers.

Walmart said the wage increases are a combination of regular annual increases and targeted investments in starting rates.

The increase comes as U.S. wage growth moderates. Data from earlier this month showed average hourly earnings growth for U.S. workers slowed to 0.3% in December, compared with 0.4% in the prior month.