Price of mail delivery set to increase

As mail volumes continue to fall, NZ Post is increasing its prices. Photo/ Supplied.

New Zealand Post is increasing the price to send letters and parcels as the amount of mail being sent continues to fall.

The company said letter volumes were declining significantly with around 60 million fewer sent a year.

Because of this, the cost of sending a medium-sized letter within New Zealand by FastPost would be increasing by 50 cents from $1.80 to $2.30 from July 1.

The increase is one of several price increases the company was making following its annual price review. New Zealand Post said falling mail volumes were affecting the company.

"Despite significant and ongoing cost reductions, this has had an impact on revenue and some price increases are necessary," it said.

Prices for all FastPost letters, along with some courier, international and business products, international air parcels and bulk mail would increase.

Standard Post prices would remain unchanged in 2017.

New Zealand Post said it would continue to seek ways to improve efficiency and make cost savings to keep the price of sending mail as low as possible in the future.

Postage prices also increased last year.

Saturday delivery surcharges would increase 20c, and the rural delivery surcharge will increase 50c.

International Express Courier products will rise up to 10 per cent for items over 1 kilogram, all products under that weight would increase by $5.