Keeping up with your penpal is about to get a little pricier.
The Government of Canada has announced that the price of domestic and international stamps are about to see an increase as of January 14, with a single Canada to Canada stamp rising from a loonie to $1.05.
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The extra nickel may not sound like a lot at the till, but the increase in price is expected to generate an annual $26 million for Canada Post, according to the Government of Canada release.
The last time the price of stamps in Canada had been reevaluated was back in 2014.
Canadians will still be able to save some cash by buying in bulk, though the cost per stamp when purchased in booklets, coils, or panes will still go up from $0.85 to $0.90 per stamp.
The increase in prices is not expected to impact the number of stamps purchased, as the release states that the erosion of letter-mail seen over the past few years is a result of Canadians opting for e-mail correspondence instead, and not the price of stamps.
“Letter mail is eroding on account of electronic substitution and recent history has demonstrated that price increases, or lack thereof, have no appreciable impact on its level of use,” the release states.
The price increase is estimated to cost the average Canadian household a total of $0.65 in 2019, and the increase translates to a $14.21 increase for small businesses.
Of the $26 million in additional revenue that is expected to be generated from the increase, $11 million will come from consumers and the remaining $15 million from those small businesses.
That money will be used to alleviate some of the “financial pressures” facing Canada Post, which recently faced a pre-holidays strike spanning across the country.
“Given the current rate at which letter mail volumes are declining and the other financial pressures faced by Canada Post, it may no longer generate sufficient revenue to meet its service obligations in the future without regular changes in its rate structure,” the release states.
“The rate increases will help ensure that the costs of running the postal service are paid by those who use it and not the Canadian taxpayer.”
Here’s a breakdown of the changes you’ll see at the post office as of January 14: