Canada Post increases price of stamps
The Canadian federal cabinet has approved sharp price hikes in stamps for mail to the U.S. and other countries, along with an automatic one-cent increase in the cost of mailing a first-class letter in January.
While the cost of a stamp for domestic letters weighing up to 30g will rise to 49c, plus GST, on Jan. 12, the cost of stamps for letters, cards and postcards to the U.S. will jump 23% to 80c, under an order cabinet passed last week.
The decision will result in an increase of the basic stamp price for mail to other destinations abroad to $1.40 from $1.25.
Despite the increases, the cost of mailing letters from Canada to other countries compares favourably to the cost from other countries to Canada. It costs $2.37 to mail a 30g letter to Canada from Britain, $3.13 from Germany and $1.16 from the U.S.
While the cost of a stamp for a basic 30g letter is set automatically under a formula based on the Consumer Price Index, other rates are set by cabinet after considering operating costs. “There are continual increases in terminal dues that we pay to other postal administrations,” said Canada Post spokesman John Caines, who also cited increases in transportation and fuel costs. The domestic first-class letter rate was last increased in 2001.
Other changes included an increase in the cost of registered mail, elimination of a fee for mailing literature for the blind abroad, and elimination of the “small-packet” classification for support parcels sent to Canadian Forces soldiers abroad.
Mr. Caines said the troop parcels will now be classified in other service categories, with no increase in mailing costs.
The new price for Canadian stamps is equivalent to thecost of a first-class stamp in the U.S. under the exchange rate.
