CIGARETTE PRICE HIKES MAY IGNITE INFLATION SURGE

The tobacco industry's $206 billion health care settlement -- to be
financed through higher cigarette prices -- probably will push up
consumer inflation about 0.2 percentage points in December, according
to an economist at the federal Bureau of Labor Statistics. Philip
Morris Cos. and RJR Nabisco Holdings Corp., the nation's two largest
tobacco companies, increased wholesale cigarette prices Tuesday by 45
cents a pack to raise money for their share of the record-setting settlement.

Compiled from reports by Mercury News staff, Bloomberg News, Dow Jones
and the New York Times.

Checked-by: Patrick Henry