Why are stamp prices rising yet again?
The cost of domestic stamps in Canada will inch up a cent tomorrow to 52 cents, nearly quadruple the price in 1976. In the past decade, stamp prices have risen seven times.
Starting tomorrow, letters headed for the United States will cost Canadians 93 cents, an increase of four cents.
Despite many beliefs, Canada Post isn’t given free rein to raise prices. By government regulation, stamp prices can only rise by no more than two-thirds of the yearly inflation rate.
The corporation, though, faces a host of technological and demographic challenges.
Individual “snail mail” use has dropped as Canadians have begun choosing e-mail over traditional penmanship and companies have begun to consolidate various services into one bill, Canada Post recently reported.
Coupled with rising inflation, skyrocketing fuel prices and a yearly population increase of about 240,000 residents, who add more than CD20 million in extra expenses, the Crown corporation says it needs to recoup the costs.
Increased terminal dues, charged to Canada Post by foreign countries receiving mail from here, have also translated to additional costs for the company, it said.
In a statement, the corporation pointed out that while Canadians will pay CD1.55 for regular mail to foreign countries besides the United States a six-cent increase the British paid CD2.28 for mail to Canada and Germans paid CD2.79.
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