If the market price of imported cigars goes up (as a percentage) but less than the rate of increase in the CPI (which was 2% over the last 12 months) then the price of imported cigars would not be included in the CPI basket because the y arenot produced demestically the price of imported cigars has gone down in real terms the price of imported cigars has gone up in real terms the nominal price of imported cigars has decreased