Tobacco product prices continue to rise – another wave of price increases in retail
There has been another significant price increase in the tobacco products market: according to the updated list of the Regulatory Activities Supervisory Authority, the price of 45 cigarettes and 10 cigars has increased since November 17. The changes became official on November 21, according to the authority’s publication.
According to the Pénzcentrum summary, the price increase is particularly spectacular for certain premium category products: for example, the new price of the Davidoff Robusto Tubos Selection Black cigar is 36,900 forints, but dozens of other cigars and cigarettes are also affected by the price increase.
According to experts, the trend is expected to continue. The WHO has previously recommended that governments increase prices of tobacco products, sugary drinks and alcohol by up to 50% to curb consumption. In parallel, the European Commission is also considering plans to drastically increase excise taxes, which could further increase tobacco prices in the coming period.
Retailers expect that some consumer demand may shift towards cheaper alternatives or the black market, while the new tax burden could affect the profitability of the entire tobacco market.
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