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| Britain |
| UK: Cigarette prices soar 200% in 15 years |
| 2004-07-17 |
| The cost of cigarettes has more than tripled during the past 15 years while the price of televisions and computers has fallen by 74%, UK research shows today. Britain's biggest mortgage lender Halifax said the cost of a packet of cigarettes had risen more than anything else since 1989, according to the Retail Price Index (RPI), soaring by 204%. At the same time, personal services, such as hairdressing and beauty care and dentists' charges, were 164% higher, while the cost of going to the cinema or theatre and sporting activities was 157% more. The cost of eating out has nearly doubled during the period, with the price of restaurant meals and takeaways soaring by 94% and canteen meals rising by 143%. Beer now costs 94% more than it did in 1989, while the price of wine is 65% higher. The cost of running a home has also been one of the fastest rises, increasing by 97% over the past 15 years, with the price of repairs and maintenance rocketing by 147%. Water charges are 130% more than they were 15 years ago, while council tax has risen by 102% in the past 10 years. The price of a foreign holiday is now 61% more than it was in 1989, while the cost of a holiday in the UK has risen by 45% during the same period. But at the same time the price of audio visual equipment, such as televisions and computers, has fallen by 74%, with prices halving in the past five years alone. The cost of women's clothing has dropped by 34% since 1989, while children's clothing now costs 20% less, although the price of men's clothing has fallen by just 9%. White goods, such as washing machines and fridges, are now 20% cheaper than they were 15 years ago, while the cost of a car is down by 15%. Overall the group said the RPI had risen by 62% since June 1989, while average earnings increased at a faster rate of 106%. The price of all services has risen by 94% during the period — more than double the increase in the price of goods of just 38%. Tim Crawford, group economist at Halifax, said: "While headline inflation has been relatively tame, there has been a lot of movement beneath the surface. Alongside the significant inflation in areas like personal services, we have seen a dramatic price deflation in big ticket items like personal computers and televisions." |
| Posted by:Mark Espinola |