The cost of sending a standard letter within New Zealand will increase 20 cents from $1 to $1.20 from July 1.

NZ Post is making this change, along with other changes to postal products, following its annual price review.

For business customers, who use the Bulk Mail products there will also be product and price changes.

New Zealand Post chief marketing officer Bryan Dobson says these changes will assist NZ Post to manage the ‘significant loss of revenue' from fewer letters being sent and still maintain a network of more than 880 postal outlets and 1.98 million delivery points.

'To provide a commercially sustainable letters service we have had to review and adjust prices,” he says.

'We acknowledge this represents a change, and we have worked very hard to reduce operational costs to minimise impact on customers who value and depend on this service.

'Careful consideration has been taken in making these pricing decisions, however given the letter decline challenges NZ Post faces they are necessary.

'Our postal pricing will now better reflect the cost to process and deliver items, and will help ensure our letters business is in good shape for the future.”

Prices will increase for all Standard Post letter sizes and Bulk Mail, along with increases for domestic parcels, courier, international inbound and international outbound letters and parcels.

A full list is available on the New Zealand Post website at www.nzpost.co.nz/july2018.