Sending Christmas cards is going to cost you more this year as the price of sending a medium sized letter goes up 20 cents from July.

New Zealand Post said the annual price review will see the price of sending a letter hit $1 this year.

Letter volumes have continued to fall sharply at a rate of approximately 60 million items a year, affecting revenue, the postal service said

The cost of sending a letter by FastPost will increase 40 cents to $1.80, while sending a parcel within New Zealand will remain unchanged in 2016.

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Hear NZ Post's Malcolm Law talk to Newstalk ZB's Mike Hosking about the price hike here: