Royal Mail has hiked up the price of first class stamps from today - with Britons now expected to pay £1.10 for soft delivery.
The increase is a rise of 16 per cent in year, well above the level of inflation at 10.4 per cent.
Previously it cost 95p to post a letter via first class.
At the same time, Royal Mail has increased the cost it charges for second stamp from 68p to 75p.
The price rise is by more than inflation
PA
The price rises are the latest in a series of hikes made by Royal Mail in recent years, with Citizens Advice warning costs have increased by 64 per cent over the last five years.
Nick Landon, chief commercial officer at Royal Mail said: “We have to carefully balance our pricing against a continued decline in letter volumes and the increasing costs of delivering letters six days a week to an ever-growing number of addresses across the country.
"We are seeing a fundamental change in consumer needs with a greater shift in demand from letters to parcels.
"It is vital that the Universal Service adapts and stays both relevant and sustainable.
"We need to make these price changes to ensure we can continue to maintain and invest in the one-price-goes-anywhere Universal Service for years to come."
The Royal Mail's Universal Service Obligation requires it to legally deliver letters to every address in the UK, six days a week, at a uniform price.
It is held to the standard under the Postal Services Act 2011.
Royal Mail is already losing £1million a day and has warned that it is at risk of entering administration.
Royal Mail has said the increase is necessary to keep up its six day service
PA
The bankruptcy fears are in part due to a long-running row with Royal Mail staff over pay and conditions.
"Administration is a real possibility for Royal Mail if the industrial action continues. It is not a negotiating ploy," a source told the BBC last week.
A Royal Mail spokesman has the company was "doing all we can" to resolve the dispute.
