June cigarette shipments are estimated to increase by 50 per cent over the same time last year as the nation braces for a rise in the price of tobacco products, Japan Tobacco (JT) officials said.

The increase is larger than that prior to the previous price hike in July 2003. Industry sources attribute the surging demand to a sharper rise in the prices of popular cigarettes, including the Mild Seven brand that one in three smokers in Japan reportedly smoke.
JT estimates that the June shipment of cigarettes will increase to nearly 40 billion cigarettes, up from the 24.4 billion in June 2005.
The retail prices of cigarettes will be raised in July due to a tax hike. The prices of most cigarettes will be raised by 20 yen per package. However, those of popular brands such as Mild Seven will be increased by 30 yen to help finance the installation of vending machines that can distinguish children from adults and to pay to establish smoking areas in public places. The price hike is likely to speed up the decrease in the smoking population, industry sources said. (pi)