Philip Morris Cos., the world's largest tobacco company, is raising U.S. cigarette prices to distributors by about 3 percent to boost profit and help pay for rising legal settlement costs.
Analysts expect rival U.S. cigarette makers to follow.
The increase comes after increases of 13 cents in January and 18 cents last August. The increase could come out to about 8 cents a pack at checkout counters, said Credit Suisse First Boston analyst Bonnie Herzog. Cigarette makers have increased prices to pay for legal costs and, lately, to fund promotions to keep smokers from switching to discount brands, analysts said. Officials at No. 2 R.J. Reynolds Tobacco Holdings Inc. and No.