Canada Post has proposed raising regulated postage rates next year, which would see the price of most stamps rise by 25 cents to $1.24.

The agency says it has kept letter rate increases to a minimum for the past decade, and the one-time increase will help align stamp prices with the rising cost of providing the service.

Canada Post says the volume of mail has fallen by 60 per cent over the past two decades, while the number of addresses served has increased.

In August, Canada Post's board chairman said its finances were unsustainable as it faced more competition in package delivery in addition to shrinking mail volumes.

If approved, Canada Post says the new rates will take effect on Jan. 13, after the holiday mailing season.

The agency says the new rates will generate about $80 million in additional gross revenue by 2025.

news source