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New Jersey $1.50
Washington $1.43
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Michigan $1.25
Hawaii $1.20
Pennsylvania $1.00

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Cigarette Taxes European Cigarette Tax Increase
Inflation in the dozen nations sharing the euro rose in December, boosted by higher tobacco taxes in Germany and Italy.

Consumer prices rose 2.3 percent from a year ago, after gaining 2.2 percent in November, said Luxembourg-based Eurostat, the European Union's statistics office. Eurostat's first estimate matched the median forecast of 36 economists in a Bloomberg survey.

Higher taxes on cigarettes pushed up inflation in Germany and Italy, which account for almost half the 12-nation economy. Retailers are struggling to raise prices across the region as an unemployment rate at a five-year high of 8.9 percent damps consumer spending.

A sharp rise in tobacco taxes lifted inflation in Germany and impacted on euro-zone inflation,'' said Elwin de Groot, an economist at Fortis Bank Nederland NV in Amsterdam. The strength of the euro and the fall of oil prices will contribute to lower inflation this year.

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