UK 1st class post rate jumps by a third - BusinessWeek

LONDON

Britain's Royal Mail has been freed to charge what it wishes for a first-class stamp, a move that sent chills through the nation's greeting card industry.

The postal carrier, which the government intends to privatize, said Tuesday the price of a first class stamp would rise from 46 pence to 60 pence ($0.96, (EURO)0.72) on April 30.

Sharon Little, speaking for the Greeting Card Association, says that hike is "a biggie," but the rise in second-class stamps from 36 pence to 50 pence might have a bigger impact.

"We think this could affect Christmas quite dramatically," Little said, because many people send cards in large batches which makes the higher price more obvious.

Regulator Ofcom set a ceiling of 55 pence on second-class post, which will increase in line with inflation.