Pushing the envelope: NZ Post hikes price of sending letters again

Mailing a letter is set to become more expensive. Photo/Getty Images.

It will soon cost New Zealanders 10 cents more to send a letter.

New Zealand Post announced today that it would be increasing the cost of sending a letter to $1.30 from 1 July 2019.

NZ Post has faced pressure in recent years, with continued decreases in the number of letters sent annually.

"New Zealand currently has one of the highest rates of decline in the world, as people choose to communicate more online," said NZ Post general manager Matt Geor.

"Only around one per cent of mail sent in New Zealand is made up of personal letters, the rest is business mail."

Geor said the price increase was necessary to help cover the cost of delivering letters and to ensure NZ Post can sustain the current level of postal service.

"We continue to work hard to keep the cost of posting mail as low as possible, by significantly reducing our network costs and making big changes to how we operate," said Geor.

"However, with an annual decline of approximately 60 million mail items through our network, we also need to increase the price of postage."

Geor acknowledged the price increase would have an impact on existing customers.

"We want to reassure them we are working very hard to ensure our mail business is fit for the future, and that the changes will not affect our delivery service."

NZ Post made a $7 million profit in the six months to December 31 up from $6 million in the same prior period.