New Zealand Post Group, the state-owned postal service, is increasing the cost of a standard domestic letter to 70 cents starting on July 1.

The postage for sending a standard size letter within New Zealand will rise from 60 cents mid-year. Postage rates for international courier services and some international business letter services will increase between 2.5 per cent and 5 per cent.

"Letter volumes continue to decline due to increased uptake of electronic communication, while simultaneously the cost of transporting, processing and delivering letters steadily increases," the company said in a statement. "New Zealand Post does not anticipate any further price adjustments to the standard letter rate for at least two years."

This is the first increase in the standard letter rate since October 2010 when the post office increased its price to 60 cents from 50 cents alongside a nationwide increase in goods and services tax.

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In January, it increased postage rates for domestically self-wrapped parcels by between 5 per cent and 11 per cent, while parcels destined for rural delivery addresses incurred an addition charge of $2.80 from Mar. 1.

Postage stamps that cost 60 cents will remain valid after July 1 but their recommended retail price will rise to 70 cents.

The changes will not affect the cost of sending standard international letters overseas.