McCreevy defends tobacco price hike

Finance Minister Charlie McCreevy is defending a decision not to put a heavier tax on the price of cigarettes.

Anti-smoking campaigners had been calling for the price of tobacco to be increased by as much as €2 per box of 20.

However, Minister McCreevy said that would have had a massive impact on inflation.

He said his measures in this year’s budget were designed to achieve an average inflation rate of 2.5% for next year.