April 18, 2019 / 8:43 AM / 6 months ago

German regulator paves way for big hike in postal charges

BERLIN, April 18 (Reuters) - Germany’s Federal Network Agency has cleared the way for Deutsche Post to significantly increase the cost of sending letters, after the company pledged to hire an extra 5,000 delivery workers.

The agency said that the company could increase prices by 10.63 percent from July 1. It is now up to Deutsche Post to determine how the increase will be applied to various letter sizes, postcards, as well as other services.

Deutsche Post delivers 59 million letters a day in Germany and has a market share of 62 percent. It last increased postage for a standard letter to 70 cents from 62 cents in 2016.

The company, which is partly state-owned, has enjoyed a boom in volumes thanks to the rapid growth in parcel shipments by online retailers such as Amazon.com and Zalando but price increases have not kept pace with its costs. (Reporting by Matthias Inverardi, Emma Thomasson, editing by Thomas Escritt)

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