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Essential item about to get more expensive

Prices on essential items at Australia Post are about to get more expensive. Picture: NCA NewsWire / John Gass

Sending letters and parcels is about to get more expensive as Australia Post hikes its prices.

The company warned earlier this year its letter service was on an “unstoppable decline” with revenue dropping to $4.69 billion for the for the last six months of the year.

The national postal service blamed the hike on “growing costs” which “outweigh the current price” of products and services in a pricing update posted to their website on Friday.

Prices will go up on domestic and international parcels and letters as well as MyPost business services, mail hold and redirection and photo ID services from July 3.

Australia Post will bump up the prices of letters and parcels from July 3. Picture: NCA NewsWire / John Gass

“As a self-funded business enterprise, these changes are necessary to help meet growing costs which outweigh the current price of our products and services,” the statement read.

The cost of a small satchel will go up to $10.60 and extra large parcels will increase to $21.95.

Two things that will be spared from the price hike are concession priced stamps ($0.60) or seasonal greeting stamps ($0.65).

It comes as the postal service struggles to cope with inflation. Picture: NCA NewsWire / Dylan Coker

Australia Post is also cancelling a number of services including Express Post platinum and Saturday delivery.

International Economy Air will no longer be available in MyPost Business and will only be available at Post Offices.