diff --git a/ddt.py b/ddt.py
index a084695..80b52cc 100644
--- a/ddt.py
+++ b/ddt.py
@@ -6,11 +6,13 @@
 # https://github.com/txels/ddt/blob/master/LICENSE.md
 
 import inspect
+import itertools
 import json
 import os
 import re
 import sys
 from functools import wraps
+from collections import namedtuple
 
 __version__ = '1.0.0'
 
@@ -19,14 +21,12 @@
 # by the `ddt` class decorator.
 
 DATA_ATTR = '%values'      # store the data the test must run with
-FILE_ATTR = '%file_path'   # store the path to JSON file
 UNPACK_ATTR = '%unpack'    # remember that we have to unpack values
 
 
 def unpack(func):
     """
     Method decorator to add unpack feature.
-
     """
     setattr(func, UNPACK_ATTR, True)
     return func
@@ -34,20 +34,48 @@ def unpack(func):
 
 def data(*values):
     """
-    Method decorator to add to your test methods.
+    Method decorator to add data to your test methods.
 
     Should be added to methods of instances of ``unittest.TestCase``.
 
+    All arguments to this function will be passed as arguments to the
+    decorated test method, and each argument passed will generate a new test
+    method.
+
+    The ``@data`` and ``@file_data`` decorators can be nested. When nested,
+    the arguments passed to ``data`` and stored in the files named in
+    ``file_data`` will be combined in a Cartesian product before being passed
+    to the decorated method. For example:
+
+    .. code-block:: python
+
+        @data(1, 2)
+        @data(3, 4)
+        def test_foo(self, fst, snd):
+            pass
+
+    would result in four test calls:
+
+    .. code-block:: python
+
+        test_foo(1, 3)
+        test_foo(2, 3)
+        test_foo(1, 4)
+        test_foo(2, 4)
     """
     def wrapper(func):
-        setattr(func, DATA_ATTR, values)
+        if not hasattr(func, DATA_ATTR):
+            setattr(func, DATA_ATTR, [])
+        # Prepend the new set of values, so that the the stack of @data
+        # decorators inserts arguments from top to bottom
+        getattr(func, DATA_ATTR).insert(0, DataValues(values))
         return func
     return wrapper
 
 
 def file_data(value):
     """
-    Method decorator to add to your test methods.
+    Method decorator to add data from a file to your test methods.
 
     Should be added to methods of instances of ``unittest.TestCase``.
 
@@ -65,11 +93,48 @@ def file_data(value):
 
     """
     def wrapper(func):
-        setattr(func, FILE_ATTR, value)
+        if not hasattr(func, DATA_ATTR):
+            setattr(func, DATA_ATTR, [])
+        # Prepend the new set of values, so that the the stack of @data
+        # decorators inserts arguments from top to bottom
+        getattr(func, DATA_ATTR).insert(0, FileValues(value))
         return func
     return wrapper
 
 
+class DataValues(namedtuple("DataValues", ["values"])):
+    def test_values(self, cls, func):
+        for v in self.values:
+            if hasattr(func, UNPACK_ATTR):
+                if isinstance(v, tuple) or isinstance(v, list):
+                    yield TestValue(func, *v)
+                else:
+                    # unpack dictionary
+                    yield TestValue(func, **v)
+            else:
+                yield TestValue(func, v)
+
+
+class FileValues(namedtuple("FileValues", ["file_path"])):
+    def test_values(self, cls, func):
+        cls_path = os.path.abspath(inspect.getsourcefile(cls))
+        data_file_path = os.path.join(
+            os.path.dirname(cls_path),
+            self.file_path
+        )
+
+        if os.path.exists(data_file_path) is False:
+            yield TestError(ValueError("%s does not exist" % self.file_path))
+        else:
+            data = json.loads(open(data_file_path).read())
+            if isinstance(data, dict):
+                for key, value in data.items():
+                    yield TestValue(func, value, _test_value_name=key)
+            elif isinstance(data, list):
+                for value in data:
+                    yield TestValue(func, value)
+
+
 def is_hash_randomized():
     return (((sys.hexversion >= 0x02070300 and
               sys.hexversion < 0x03000000) or
@@ -148,41 +213,77 @@ def wrapper(self):
     return wrapper
 
 
-def add_test(cls, test_name, func, *args, **kwargs):
-    """
-    Add a test case to this class.
-
-    The test will be based on an existing function but will give it a new
-    name.
-
-    """
-    setattr(cls, test_name, feed_data(func, test_name, *args, **kwargs))
-
-
-def process_file_data(cls, name, func, file_attr):
-    """
-    Process the parameter in the `file_data` decorator.
-
-    """
-    cls_path = os.path.abspath(inspect.getsourcefile(cls))
-    data_file_path = os.path.join(os.path.dirname(cls_path), file_attr)
-
-    def _raise_ve(*args):  # pylint: disable-msg=W0613
-        raise ValueError("%s does not exist" % file_attr)
-
-    if os.path.exists(data_file_path) is False:
-        test_name = mk_test_name(name, "error")
-        add_test(cls, test_name, _raise_ve, None)
-    else:
-        data = json.loads(open(data_file_path).read())
-        for i, elem in enumerate(data):
-            if isinstance(data, dict):
-                key, value = elem, data[elem]
-                test_name = mk_test_name(name, key, i)
-            elif isinstance(data, list):
-                value = elem
-                test_name = mk_test_name(name, value, i)
-            add_test(cls, test_name, func, value)
+class TestValue(object):
+    def __init__(self, func, *args, **kwargs):
+        if '_test_value_name' in kwargs:
+            self.value_name = kwargs.pop('_test_value_name')
+        elif len(args) == 1 and not kwargs:
+            self.value_name = getattr(args[0], '__name__', args[0])
+        elif args:
+            self.value_name = args
+        elif kwargs:
+            self.value_name = kwargs
+        else:
+            raise Exception("unable to generate value names")
+
+        self.func = func
+        self.args = args
+        self.kwargs = kwargs
+
+    def add_test(self, cls, name, index):
+        """
+        Add a test case to this class.
+
+        The test will be based on an existing function but will give it a new
+        name.
+
+        """
+        test_name = mk_test_name(name, self.value_name, index)
+        test_data = feed_data(self.func, test_name, *self.args, **self.kwargs)
+        setattr(cls, test_name, test_data)
+
+
+class TestError(TestValue):
+    def __init__(self, exception):
+        self.exception = exception
+        super(TestError, self).__init__(
+            self._raise_exception,
+            _test_value_name="error"
+        )
+
+    def _raise_exception(self, test_cls):
+        raise self.exception
+
+
+def combine(test_values):
+    if len(test_values) == 1:
+        return test_values[0]
+
+    func = None
+    args = []
+    kwargs = {}
+    names = []
+    for test_value in test_values:
+        if isinstance(test_value, TestError):
+            return test_value
+
+        if func is None:
+            func = test_value.func
+        elif test_value.func != func:
+            return TestError(
+                ValueError(
+                    "{} is not the same function as {}".format(
+                        test_value.func,
+                        func
+                    )
+                )
+            )
+
+        args.extend(test_value.args)
+        kwargs.update(test_value.kwargs)
+        names.append(test_value.value_name)
+
+    return TestValue(func, _test_value_name=names, *args, **kwargs)
 
 
 def ddt(cls):
@@ -211,19 +312,11 @@ def ddt(cls):
     """
     for name, func in list(cls.__dict__.items()):
         if hasattr(func, DATA_ATTR):
-            for i, v in enumerate(getattr(func, DATA_ATTR)):
-                test_name = mk_test_name(name, getattr(v, "__name__", v), i)
-                if hasattr(func, UNPACK_ATTR):
-                    if isinstance(v, tuple) or isinstance(v, list):
-                        add_test(cls, test_name, func, *v)
-                    else:
-                        # unpack dictionary
-                        add_test(cls, test_name, func, **v)
-                else:
-                    add_test(cls, test_name, func, v)
-            delattr(cls, name)
-        elif hasattr(func, FILE_ATTR):
-            file_attr = getattr(func, FILE_ATTR)
-            process_file_data(cls, name, func, file_attr)
+            value_combinations = itertools.product(*(
+                value_set.test_values(cls, func)
+                for value_set in getattr(func, DATA_ATTR)
+            ))
+            for idx, values in enumerate(value_combinations):
+                combine(values).add_test(cls, name, idx)
             delattr(cls, name)
     return cls
diff --git a/test/test_example.py b/test/test_example.py
index 35fc002..d7bea4b 100644
--- a/test/test_example.py
+++ b/test/test_example.py
@@ -55,6 +55,28 @@ def test_list_extracted_into_arguments(self, first_value, second_value):
     def test_dicts_extracted_into_kwargs(self, first, second, third):
         self.assertTrue(first < third < second)
 
+    @data(1, 2, 3)
+    @data(4, 5, 6)
+    @data(7, 8, 9)
+    def test_products(self, first_value, second_value, third_value):
+        self.assertTrue(first_value < second_value < third_value)
+
+    @unpack
+    @data({'first': 1}, {'first': 2}, {'first': 3})
+    @data(
+        {'second': 4, 'third': 5},
+        {'second': 5, 'third': 6},
+        {'second': 6, 'third': 7}
+    )
+    def test_dict_products(self, first, second, third):
+        self.assertTrue(first < second < third)
+
+    @unpack
+    @data([1], [2], [3])
+    @data((4, 5), (5, 6), (6, 7))
+    def test_list_products(self, first, second, third):
+        self.assertTrue(first < second < third)
+
     @data(u'ascii', u'non-ascii-\N{SNOWMAN}')
     def test_unicode(self, value):
         self.assertIn(value, (u'ascii', u'non-ascii-\N{SNOWMAN}'))
diff --git a/test/test_functional.py b/test/test_functional.py
index b0e8cfd..64e8150 100644
--- a/test/test_functional.py
+++ b/test/test_functional.py
@@ -3,7 +3,9 @@
 
 import six
 
-from ddt import ddt, data, file_data, is_hash_randomized
+from ddt import (
+    ddt, data, file_data, is_hash_randomized, DataValues, FileValues
+)
 from nose.tools import assert_equal, assert_is_not_none, assert_raises
 
 
@@ -71,7 +73,31 @@ def hello():
     extra_attrs = dh_keys - keys
     assert_equal(len(extra_attrs), 1)
     extra_attr = extra_attrs.pop()
-    assert_equal(getattr(data_hello, extra_attr), (1, 2))
+    assert_equal(getattr(data_hello, extra_attr), [DataValues((1, 2))])
+
+
+def test_multiple_data_decorators():
+    """
+    Test the ``data`` method decorator with multiple applications
+    """
+
+    def hello():
+        pass
+
+    pre_size = len(hello.__dict__)
+    keys = set(hello.__dict__.keys())
+    data_hello = data(1, 2)(data(3)(hello))
+    dh_keys = set(data_hello.__dict__.keys())
+    post_size = len(data_hello.__dict__)
+
+    assert_equal(post_size, pre_size + 1)
+    extra_attrs = dh_keys - keys
+    assert_equal(len(extra_attrs), 1)
+    extra_attr = extra_attrs.pop()
+    assert_equal(
+        getattr(data_hello, extra_attr),
+        [DataValues((1, 2)), DataValues((3,))]
+    )
 
 
 def test_file_data_decorator_with_dict():
@@ -84,7 +110,7 @@ def hello():
 
     pre_size = len(hello.__dict__)
     keys = set(hello.__dict__.keys())
-    data_hello = data("test_data_dict.json")(hello)
+    data_hello = file_data("test_data_dict.json")(hello)
 
     dh_keys = set(data_hello.__dict__.keys())
     post_size = len(data_hello.__dict__)
@@ -93,7 +119,39 @@ def hello():
     extra_attrs = dh_keys - keys
     assert_equal(len(extra_attrs), 1)
     extra_attr = extra_attrs.pop()
-    assert_equal(getattr(data_hello, extra_attr), ("test_data_dict.json",))
+    assert_equal(
+        getattr(data_hello, extra_attr),
+        [FileValues("test_data_dict.json")]
+    )
+
+
+def test_multiple_file_data_decorators_with_dict():
+    """
+    Test the ``file_data`` method decorator with multiple applications
+    """
+
+    def hello():
+        pass
+
+    pre_size = len(hello.__dict__)
+    keys = set(hello.__dict__.keys())
+    data_hello = file_data("test_other_data.json")(hello)
+    data_hello = file_data("test_data_dict.json")(data_hello)
+
+    dh_keys = set(data_hello.__dict__.keys())
+    post_size = len(data_hello.__dict__)
+
+    assert_equal(post_size, pre_size + 1)
+    extra_attrs = dh_keys - keys
+    assert_equal(len(extra_attrs), 1)
+    extra_attr = extra_attrs.pop()
+    assert_equal(
+        getattr(data_hello, extra_attr),
+        [
+            FileValues("test_data_dict.json"),
+            FileValues("test_other_data.json"),
+        ]
+    )
 
 
 is_test = lambda x: x.startswith('test_')
diff --git a/tox.ini b/tox.ini
index b8c1edf..2103baa 100644
--- a/tox.ini
+++ b/tox.ini
@@ -4,7 +4,7 @@ envlist = py27, py33, py34
 [testenv]
 deps = 
     nose
-    pep8
+    pep8>=1.5.7,<1.6  # Versions limited to work with flake8
     coverage
     flake8
     six