Canada Post plans 25 cent stamp price hike in 2025

Canada Post is facing significant financial challenges, prompting a proposal to increase stamp prices by 25 cents, raising the cost to $1.24. This decision comes after a decade of minimal rate increases, as the organization aims to align postage prices with the rising costs of service provision. The decline in letter mail volumes, which have dropped by 60% over the past 20 years, has compounded the issue, while the number of addresses served has continued to rise. The board chair of Canada Post highlighted the unsustainable nature of the current financial situation, exacerbated by increased competition in the parcel delivery market. The proposed price hike is expected to generate approximately $80 million in additional gross revenue in 2025, which Canada Post hopes will help stabilize its finances. If approved, the new rates will take effect on January 13, 2025, following the holiday mailing season. This timing is strategic, as it allows Canada Post to implement the changes after the peak mailing period, minimizing disruption for customers. Overall, the proposed increase reflects broader trends in the postal industry, where traditional letter mail services are declining, and organizations must adapt to maintain financial viability. The decision underscores the challenges faced by Canada Post in balancing service provision with economic realities.