Canada Post Hikes Stamp Prices Amid Financial Struggles
Canada Post has officially raised the price of stamps, and it’s likely to impact many Canadians in the coming months. This price increase, which took effect recently, is a result of the corporation's ongoing financial losses. If you send mail in Canada, here's what you need to know about the new rates and how they might affect you.
The price of an individual stamp for sending a domestic letter has increased by 25 cents, going from $1.15 to $1.44. For those who purchase stamps in booklets, coils, or panes, the price has gone up from 99 cents to $1.24 per stamp. This is a significant change, as these types of stamps make up the majority of stamp sales in Canada. The price hikes also extend to other mailing services, such as U.S. and international letter-post services, as well as domestic registered mail, all seeing an average price increase of 25 percent.
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The decision to raise prices was proposed last year and was approved in late November. Canada Post officials have stated that this price hike is a necessary move to address the rising costs of mail services, which are under increasing pressure due to inflation and a declining volume of mail. The company explained that, every year, there are fewer letters to deliver, but more addresses to reach, which adds significant cost burdens on its operations. The price increase is expected to generate about $80 million in additional revenue for the corporation in 2025.
For the average Canadian household, the impact of this rate increase is expected to be an additional $2.26 per year. For small businesses, which tend to use Canada Post’s services more frequently, the cost could rise to $42.17 annually. While the price hike may not seem significant for an individual, for small businesses and frequent mail users, the additional costs can add up over time.
This stamp price hike comes after a rough year for Canada Post. The national mailing service reported a loss of $315 million before tax in the third quarter of 2024, largely due to a decline in parcel revenue and a drop in volume. Canada Post is anticipating further losses for 2024, marking the seventh consecutive year of financial difficulties. In light of these struggles, Canada Post hopes that the increased stamp prices will help offset some of these financial challenges.
As Canada Post works to recover financially, Canadians should also be prepared for ongoing delays, particularly for transaction mail, neighbourhood mail, and international parcels. The company resumed full domestic service following a strike, but the ripple effects are expected to continue for some time.
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