Canadians can expect an 8% hike in postage rates, a total increase of $23.8 million, effective May 6, Blacklock’s Reporter reported. Canada Post managers wrote in a Regulatory Impact Analysis Statement released Saturday the increase, the first in four years, was unavoidable due to inflation.“The cost of providing a postal service to all Canadians has been steadily impacted by inflation,” the analysis statement reads. “This combined with the fact that each year there are fewer letters to deliver to more addresses has put considerable financial pressure on Canada Post.”According to Canada Post management, more than half of the cost, $14.5 million, would fall on 1.2 million small businesses nationwide. “The total increase in mailing costs for small businesses that use stamps to pay postage is estimated at $12 per year based on an average annual expenditure of $170,” it said. The increase will hike rates:.The increase is the first since January 13 2020 when rates increased from 90¢ to 92¢ for domestic stamps. The pre-pandemic rate hike was the fourth in six years.“Since then the annual growth of inflation has been the highest in over four decades,” the statement reads. “From 2020 to 2023 the Consumer Price Index increased by 14.8%. In 2022 alone Canada Post’s core business costs increased by almost $140 million when compared to 2021.”“The Canada Post Corporation Act requires Canada Post to provide quality services to all Canadians, rural and urban, individuals and businesses, in a secure and financially self-sustaining manner,” wrote managers. “Rates of postage must be fair, reasonable and together with other revenues sufficient to pay for Canada Post costs of operations.”
