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December 1994, Vol. 117,
No. 12
Pricing practices for tobacco products, 1980-94
Craig Howell
Economist, formerly with the Division
of Industrial Prices and Price Indexes, Bureau of Labor
Statistics
Frank Congelio
Economist, Division of Consumer Prices
and Prices Indexes, Bureau of Labor Statistics
Ralph Yatsko
Economist, Division of Industrial
Prices and Price Indexes, Bureau of Labor Statistics
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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