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The Oliver's Army star wrote on his website he had failed to persuade music bosses to cut the price of The Return of the Spectacular Spinning Songbook limited edition CD box set.
One fan online said "Great to see Elvis Costello keeping the spirit of punk alive." Others added: "Like him or not, nobody can deny Elvis Costello has principles", and "My respect for Elvis Costello has suddenly rocketed."
Costello, 57, said: "We find ourselves unable to recommend this lovely item to you as the price appears to be either a misprint or satire." The singer urged fans to buy Louis Armstrong's Ambassador of Jazz box set instead.
Universal Music describe the three-disc Christmas edition of The Spinning Songbook with a hardback book signed by Costello as a "super deluxe" gift.
But Costello said fans should wait until the album is given a cheaper release in January. Universal Music UK was unavailable for comment.
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