Cigarette prices soar 200% in 15 years

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.”