US tobacco prices rise as Congress
debates new legislation
US tobacco prices rose 2.8% as companies continued to try to raise extra revenue to help pay pending legal settlements.
Congress is debating new legislation that would impose huge tax rises on tobacco products, but even if the bill fails the industry is expected to have to pay out billions of dollars in legal costs.
The increase was slightly below market expectations and reflected a 0.6% fall in wholesale inventories. Retail inventories increased by 0.5%, as did manufacturing inventories, by contrast.
- Financial Times 15/06/98 page 6 (News Digest)