CDC incidence data released yesterday showed a big whiff in the government’s anti-tobacco campaign.

Although the number of daily smokers declined to 19.3 percent from 21 percent in 2005, this represented the slowest decline in 40 years. Going forward the CDC predicts a disappointing 200 basis point decline over the next ten years.

A rate near 18% will miss the Healthy 2020 target of 12% by a longshot.

Citi issued a report this morning calling the new data bullish for the industry, in which the bank prefers Lorillard and Reynolds American. Analyst Vivien Azer said the anti-tobacco campaign is running out of steam:

“The lack of progress we have seen in  educing smoking in the U.S. is nothing new, and is something the government saw coming. Recall, graphic warnings are set to be introduced in the U.S. in September 2012, and despite these efforts, the impact on smoking is expected to be minimal. While further tax hikes or increased restrictions should be expected, these take time to implement, such that we believe there is little near-term risk of accelerating cigarette industry volumes declines in the U.S.”

Yuk!

There needs to be a better education program, involving social media, rather than trying to scare smokers straight.

Obesity and smoking are two preventable downers for American’s heath.