Royal Mail to increase stamp prices from next month

The price of stamps is to increase next month, Royal Mail (LSE: RMG.L - news) has announced.

A first class stamp will go up by 1p to 65p and a second class stamp by 1p to 56p.

Royal Mail said the changes were needed "to help ensure the sustainability of the universal postal service" but that it had sought to minimise the impact on customers.

The changes will take effect from 27 March.

It follows a previous 1p rise for both first and second class stamps last March.

This year's increases will also see the cost of large letter first class stamps rise by 2p to 98p, and large letter second class stamps go up 1p to 76p.

Royal Mail claims its stamps are among the best value in Europe.

It said the European average for a first class stamp was 87p.

Letter volumes have been declining. Royal Mail said last month they fell 6% year-on-year in the nine months to 25 December.