Cost of sending parcels and letters to rise, says Royal Mail

ROYAL Mail has warned it will be forced to increase the price of posting letters and parcels as the company battles soaring costs.

In its annual results, the company warned it was facing “clear headwinds” this year including slowing economic growth and surging inflation.

Keith Williams, chairman of Royal Mail, said this meant the business would have to raise prices and ramp up cost-cutting measures.

It is a fresh blow for millions of consumers who are already facing huge increases in the cost of living, including rocketing energy and fuel bills.

Mr Williams also said a temporary boost during the pandemic, when millions of consumers in lockdown turned to online shopping and fuelled demand for parcel deliveries, was wearing off.

He said: “We have clear headwinds as we enter 2022-23, such as weakening GDP and growing inflationary pressures. We are taking actions to address short-term challenges, including price increases and accelerating efficiency opportunities, while still investing for the future.”

A spokesman said that no decisions had yet been made on price increases and the company would “carefully consider the impact on customers”.