Tuesday, January 18, 2005

Cost of mail going up.

Letters up a cent in Canada, 5 cents for mail sent abroad

Canada Post has increased the price of sending a domestic letter by one cent to 50 cents.

The hike, one of several announced last year, went into effect yesterday. Canada Post blamed them on "inflationary pressure."

In other postal rate increases:

Letters, cards and postcards up to 30g destined for the United States now cost 85 cents, up 5 cents.

Letters, cards and postcards up to 30g heading to other foreign destinations also rose 5 cents, to $1.45

The increases were based on the consumer price index from May 2003 to May 2004. Over that period, the CPI, which measures the cost of a representative basket of goods and services, rose 2.5 per cent.

By law, Canada Post can recoup up to two-thirds of the rise in the price index each year. Yesterday's one-cent increase is actually a 2.04 per cent rise, more than Canada Post would have been entitled to under that formula. But the post office said it did not raise postage prices as much as it could have last year.

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