How is real wage growth achieved?
Why would companies want to "cancel out" the wage increase? Their goal is to make money, not to keep real wages constant.

Many things factor into the pricing decisions of companies. There are competitive pressures: if rival vendors are decreasing prices the company has to follow suit or lose market share. There are also cost factors: if the price of an input (e.g. labor) rose, than the company may have to increase prices to stay profitable, or just to achieve maximum profit.

If technological improvements, economies of scale, or similar factors enable the company to produce the same quantity of goods at a lower cost, they can afford to decrease prices while keeping wages the same. This enables real wage growth. There are several similar scenarios where prices rose, but nominal wages rose even more.