Government to increase price of cigarettes by 79p

Finance Minister Charlie McCreevy is expected to increase the price of 20 cigarettes by 79 pence in the upcoming budget to make up for the shortfall in tax receipts this year.

Mr McCreevy added one percentage point to the inflation rate when he increased the price by 50 pence two years ago, so this year’s move should add around 1.5% to the rate.