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December 1994

Pricing practices for tobacco products, 1980-94

Craig Howell, Frank Congelio, Ralph Yatsko

An analysis of producer and consumer price indexes reveal that escalating prices for cigarettes cannot be attributed to higher input costs. This article sheds light on the price movements of tobacco products by looking at the pricing strategies of the U.S. tobacco industry, because prices for tobacco products have become a major factor in the swings in the inflation rate.

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