Tobacco Inflation

Tobacco Inflation

What is Inflation?

What is inflation? How is it affecting us as consumers or us as retailers when it comes to selling cigars to you. Inflation is at an all time high in forty years putting everything at record high costs even cigars. Inflation is the rate at which the value of a currency is falling and ultimately the general level of prices for good and this includes tobacco is rising. For instance a Leather Rose 5x54 was around eight dollars, now because of inflation its closer eight and a half. This is not because we want to make more money off the cigar its because the cost for us to purchase the cigar to sell it to the consumer has gone up. This causes smaller businesses to carry more cigars that are priced less, which doesn't mean the cigars are bad its just an alternative for people to try new blends they have not tried from the bigger companies. There are many budget cigars on the market that people would rather purchase because they are just as good if not better than most big name cigars.

How is inflation affecting tobacco?

The inflation rate for tobacco since 1997 is 198.86% higher now, specifically a $39.77 difference in value. So in other words something that would cost you $20 in 1997 will now cost $59.77 and this is other tobacco products not including cigarettes. Inflation with tobacco has gone up in recent years, 2010 we saw an increase of 8.91% and just a year earlier 17.69%. So not only is inflation affecting tobacco but its affecting gas and food as well. At we are trying to keep up with other online retailers. The problem remains we are a small online retailer who does not buy in bulk, so therefore our pricing might seem a little higher not because we want to its because the overall demand for product is not being met because a lof of bigger retailers are not buying the same products they used to because they are not getting the deals they once were. 

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