Cigarette prices rose 37p to an average GBP 7.46 (EUR 8.94) per pack of 20 under provisions of the 2012 budget announced Wednesday by Chancellor of the Exchequer George Osborne, the Guardian reported.

Osborne said the cigarette excise-tax increase was set at five percentage points above inflation. The tax applies to all tobacco products, the Guardian reported.
"There is clear evidence that increasing the cost of tobacco encourages smokers to quit and discourages young people from taking it up," Osborne reportedly said.
Alcohol duty was raised by two percentage points above inflation. The increases took effect on the same day as the announcement. (pi)