In the United States, the fall in retail prices for cocaine and heroin has occurred over more than a twenty year period. Figure 1
shows (inflation adjusted) prices for a pure gram of cocaine and heroin for the period 1980-2003.
As will be discussed in the policy section of this report, what is striking about these declines is that they have occurred during a period of massive
increase in incarceration of sellers of cocaine and heroin. Nor are the falls found for every drug. Cannabis prices remained
fairly constant over the period 1998-2003, increasing just slightly in inflation adjusted terms, though that may reflect a rise
in potency. (from the Global
Illicit Drug Markets 1998 - 2007)
Figure 1: Cocaine and heroin prices, United States, 1980-2003
(Office of National Drug Control Policy, 2004)